BROCHURE

ON
POST RETIREMENT COMMERCIAL EMPLOYMENT

GOVERNMENT OF INDIA
MINISTRY OF PERSONNEL, PUBLIC GRIEVANCES & PENSIONS
DEPARTMENT OF PERSONNEL & TRAINING
1988
 Index

Chapter Subject
I Introduction
II Commercial Employment-Definition
Types of employment not treated as Commercial employment.

Prior sanction of Central Government necessary for accepting

Commercial employment

Cases where permission of Government not necessary

Consequences of not obtaining sanction of Government

III Processing of applications submitted by pensioners
Consideration of application
Cases that may be decided by administrative Ministries/Deptts.
themselves
Cases which require consultation with Department of Personnel &
Training
Time limit for consideration

Criteria to be followed while processing the application

IV Restriction on practice in Income Tax and other cases
Employment under an international Organisation of which India is a
member
Employment under a Government outside India or in an International 10
VI.
organization of which India is not a member.

Appendices

I. Application form
II Rule 10 of CCS (Prension) Rules 1972
III Department of Personnel & Training
OM No. 27012/24/85-Estt(A) dated 19.8.86
IV Check list
V Register to be maintained by administrative Ministries
VI Register to be maintained by Department of Personnel & Training
 OFFICE-MEMORANDUMS PERTAINING TO COMMERCIAL EMPLOYMENT
AND LETTERS
Procedure for dealing with applications submitted by Central Civil
1 Pensioners for undertaking commercial employment within 2 years of
retirement.
Procedure for grant of permission to the pensioners for commercial
2
employment after retirement
3 Letter from Secretary DoP&T to all 25 Secretaries to the Govt. of India
 CHAPTER - I

INTRODUCTION

In order to remove any impression among the public that a retired officer
manages to secure a post retirement commercial employment as quid-pro-quo
for favours shown by them while in service and to dispel apprehensions that
high-placed Government servants, who accept employment after retirement,
may, by virtue of their past standing be in a position to exercise undue influence
on Government servants in service, Government considered whether, and if so,
to what extent should any restrictions be placed on a member of the service
seeking post-retirement commercial employment. The details of Rules framed
and instructions issued in this regard are given in following chapters.

This brochure seeks to compile relevant rules and instructions in one place and
does not amend, modify or delete any provisions existing on the date of
publication.

CHAPTER - II

Commercial Employment – Definition

Commercial employment is defined in Rule 10(8) of the Central Civil Services

(Pension) Rules, 1972 as follows:-

(a) Employment in any capacity under a company, cooperative society, firm or

individual engaged in trading, commercial, industrial financial or professional
business.

(b) Employment as agent under such company, firm etc.

(c) Directorship of such company or partnership of such firm.

(d) Setting up of practice either independently or as a partner of a firm, as

Adviser or consultant in matter in respect of which – (i) the pensioner has no
professional qualifications and (ii) the practice proposed to be set up or is carried
on is relatable to his official knowledge or experience.

(e) Setting up of practice independently or as a partner of a firm, as adviser or

consultant in matters in which pensioner has professional qualification but such
practice is likely to give his clients unfair advantage by reason of his previous
official position.

(f) Work involving liaison/contact with the offices or officers of the Government.
Note:- Employment under a cooperative 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 societies.

Type of employment no considered as commercial employment.

(a) Employment under a body corporate wholly or substantially owned or

controlled by Central Government or State Government.

Note: If Government is holding 51% share capital of a firm, corporation etc. the
same shall be treated as wholly or substantially owned or controlled by
Government.

(b) Appointment by a public financial institution or by Government, of a pensioner

as Chairman/Managing Director or Director of a private company or of a firm
whose management has been taken over by public financial institution or by
Government.

In view of the definition of the expression ‘Commercial employment’, the following

assignments will not require permission of Government.

(i) Employment in a University

(ii) Appointment as Arbitrator

(iii) Employment in an institution like the IIPA

Prior sanction of Central Government necessary for accepting commercial

employment.

A pensioner, who immediately before his retirement was a member of Central

Service Group ‘A’ is required to obtain previous sanction of the Central
Government for accepting commercial employment before the expiry of two
years from the date of his retirement from service. In case, the pensioner is re-
employed after retirement without any break either in the same or another Group
‘A’ post under the Central Government or in any other equivalent post under a
State Government, the period of two years shall be reckoned from the date the
pensioner ceases to be re-employed.

Cases where permission of Central Government no necessary to accept

commercial employment

(a) An officer who has been permitted by Central Government to take up a

private employment during leave preparatory to retirement, is not required to
obtain fresh sanction of the Central Government to continue in such employment
after retirement from service.
(b) Where a public financial institution or Government appoints a pensioner as
Chairman/Managing Director/Director of a company, whose management is in
private hands, such employment is technically commercial employment. But in
such cases specific permission of the Central Government is not required and
approval of the Central Government could be presumed because it is the
Government or the Public Financial Institution that seeks to protect its interest
through the appointment of a pensioner as a nominee Director.

Consequences of not obtaining sanction of Government for taking up

commercial employment

If a pensioner takes up commercial employment without the prior permission of

the Central Government or commits a breach of any conditions subject to which
permission has been granted to him to take up the employment, the Central
Government is competent to withhold or withdraw pension whether partly or in
full for such period as may be specified in the order. Before issuing such an order
withholding or withdrawing pension, the pensioner shall be given an opportunity
to show cause against the proposed action. While issuing such an order, the
Government shall take into account the following factors:

(i) The financial circumstances of the pensioner.

(ii) The nature of, and the emoluments from, commercial employment taken up
by the pensioner concerned and

(iii) Any other relevant factor.

CHAPTER - III

PROCESSING OF APPLICATION SUBMITTED BY A PENSIONER

A Pensioner, who proposes to take up post-retirement commercial employment

before the expiry of two years from the date of retirement, should apply for prior
sanction of Central Government in the prescribed form. A copy of the application
form is at Appendix I.

Consideration of application

All requests have to be considered by the competent authority in terms of the

provisions of Rule 10 of the CCS (Pension) Rules, 1972, the guidelines issued by
the Department of Personnel & Training vide OM No. 27012/24/85-Estt.(A),
dated 19th August, 1986. These have been reproduced as Appendices II and III.
The check list to be used by the administrative Ministries/Departments while
considering such requests, is a Appendix IV. The proforma of Register to be
maintained by the Administrative Ministries/Departments and the Department of
Personnel & Training are also at Appendices V and VI.
With a view to ensuring expeditious consideration of requests from retired
officers for taking up post retirement commercial employment,
Ministries/Departments may initiate examinations of such cases at the level of
Section Officer/Desk Officer. After examination by SO/DO, the case should be
submitted direct to the Joint Secretary, who in turn will submit the case direct to
the Minister-in-charge of the Ministry/Department for orders. Where the
application is received by Heads of Field Office(s) for onward transmission to a
Ministry/Department, the consideration of the case should start at the level of the
supervisory officer-in-charge of the section dealing with such requests.

Cases that may be decided by administrative Ministries

Cases of Central Civil Services Group ‘A’ officers, who drew a salary of less than
Rs. 5900/- per month in the revised scale (Rs. 2500/- in the pre-revised scale)
could be decided by the administrative Ministries/Departments themselves in
accordance with the prescribed procedure after obtaining the orders of the
Minister in charge. However, if the officer before his retirement from service held
a post other than the post of Deputy Secretary to Government of India
appointment to which required the approval of the Appointments Committee of
the Cabinet, the case will have to be submitted to the Prime Minister for orders.

Cases which require consultation with the Department of Personnel &

Training.

Applications submitted by a retired officer, who at the time of his retirement was
drawing pay of Rs. 5900/- and above in the revised scale, is required to be
considered by a Committee of Ministers consisting of Minister in charge of the
Ministry/Department concerned and the Minister of State in the Ministry of
Personnel, Public Grievances and Pensions, before submitting to the Prime
Minister for orders. For this purpose the administrative Ministry/Department
should refer the case to the Deptt. of Personnel & Training after obtaining the
approval of the Minister in charge. The orders passed by the Minister of State in
the Ministry of Personnel, Public Grievances and Pensions will be conveyed to
the administrative Ministry/Department, who will submit the case to the Prime
Minister for orders. If the Committee of Ministers do no recommend the grant of
permission, the case need not be submitted to Prime Minister.

Time limit for consideration

The decision taken by the competent authority on the application submitted by a

pensioner is required to be communicated to him before the expiry of a period of
60 days from the date of receipt of application. If the decision is not conveyed
before this time limit, the pensioner can presume permission of Government to
accept commercial employment. The period of 60 days would be counted only
from the date when the application in the prescribed form is submitted by the
pensioner with all the particulars called for therein. If defective or incomplete
information is furnished by the applicant and it becomes necessary to make
further reference to him, the time limit would be reckoned only from the date on
which complete information is furnished by him. While writing to the applicant
calling for additional information or asking him to rectify the defects, the authority
processing the application, should make it clear to him that the time limit for
deciding the application submitted by him will count only, when he furnishes all
the required particulars or rectify the defects in his application.

Criteria to be followed by processing the application

The following factors shall be taken into account while granting or refusing
permission to take up commercial employment:-

(a) The nature of the employment proposed to be taken and the antecedents of
the employer.

(b) Whether the duties of the pensioner in the employment which he proposes to
take up, might be such as to bring him into conflict with the Govt.

(c) Whether the pensioners, while in service, had any such dealings with the
employer under whom he proposes to seek employment as it might afford a
reasonable basis for the suspicion that such pensioners had shown favour to
such employer.

(d) Whether the duties of the commercial employment proposed involve liaison or
contact work with Govt. departments.

(e) Whether his commercial duties will be such as that his previous official
position or knowledge or experience under Govt. could be used to give the
proposed employer an unfair advantage.

(f) The emoluments offered by proposed employer.

(g) Any other relevant factor.

Note: 1. Reference to any other "relevant factor" would cover matters which may
be in the knowledge of the administrative Ministry but are not covered by the
criteria mentioned above as well as methods on which specific instructions may
be issued by the Department of Personnel & Training from time to time
supplementing the prescribed criteria.

2. The following types of employment will not be treated a employment of a

thoroughly reputable kind and as such normally permission should not be given:-

(i) Employment involving liaison or contact work with Govt. agencies

(ii) Employment with a black listed firm.

CHAPTER IV

Restriction on practice in Income Tax and other cases after retirement.

A Pensioner retired from Indian Revenue service or retired from a Group A post
under the Department of Revenue in the Ministry of Finance is not allowed to set
up practice before the expiry of two years from the date of retirement in the
following circumstances:-

(i) In any area which was within the local limit of his jurisdiction during the last
three years immediately before his retirement.

(ii) In areas other than to those referred to above without the previous sanction of
the Govt.

Note:- The expression "Practice" means practice either independently or as a

partner of a firm or a consultant or advisor in matters relating to income tax,
wealth tax, duties of custom, duties of central excise or estate duty or as a
representative of assesses in proceedings under the enactment relating to levy of
such tax or duties.

Consequences of violation of provisions of the rules

No pension is payable to pensioner who sets practice in violation of the

provisions of this in respect of any such period for which he has set up practice
or such longer period as may be decided by Govt.

[ Rule 11 quoted above has been struck down by the CAT on 31.12.86 in R.
Kapur vs. UOI. Union of India has filed an SLP in the Supreme Court and the
same is pending, For the time being the rule is not operated].

CHAPTER V

Employment under an International Organisation of which India is a

member

A Pensioner is not required to obtain permission of the Govt. to accept

employment under an International Organisation of which India is a member like
the Common Wealth Secretariat, UN Secretariat and other UN Organizations like
World Bank, UNESCO etc.

CHAPTER VI
Employment under a Govt. outside India or in an International Organisation
of which India is not a member

A pensioner is required to obtain previous sanction of the Central Government for

accepting and employment any time after retirement from service under a Govt.
outside India or under International Organisation of which India is not a member.
If an officer is permitted to accept such an employment by the Govt. while on
leave preparatory to retirement, he is not required to take fresh sanction to
continue on such employment after retirement from service.

Note:- Employment under a local authority or corporation or any other institution

or organization, which functions under the supervision or control of a Govt.
outside India is also treated as employment under a Govt. outside India.

Consequences of not obtaining sanction

If a pensioner accepts an employment mentioned above without obtaining

previous sanction of the Govt., no pension is payable to him in respect of any
period for which he is so employed or for such period as the Central Govt. may
determine.

The difference in the provisions applicable to commercial employment including

in chapter II and employment under a Govt. outside India mentioned in this
chapter.

The restriction of taking up commercial employment referred to chapter II will be

in operation for a period of two years only from the date of retirement of an officer
from service. However, there is no time limit on the restriction on taking up
retirement under a Govt. outside India or in an International organization of which
India is not a member, included in this chapter.

Appendix –1

Form of application for permission to Central Services Officers to accept

commercial employment within a period of two years after retirement.

1. Name of the Pensioner

(IN BLOCK LETTERS)________________

2. Date of retirement ____________________

3. Particulars of the Ministry/Department/Offices in which the pensioner served

during the last five years preceeding retirement (with duration)

Duration
Name of the Ministry/Deptt./office Post held
From To
4. Post held at the time of retirement
And period for which held ________________________

5. Pay scale of the post and the pay

Drawn by the officer at the time
Of retirement.__________________________________

6. Pensionary benefits:
Pension expected/sanctioned
(commutation, if any, should be mentioned Gratuity, if any

7. Details regarding commercial employment proposed to be taken up:

(a) Name of the firm/company/

Cooperative society etc.__________________

(b) Products being manufactured by the firm/

Type of business carried out by the firm
Etc__________________________________

(c) whether the official had, during his official

career, any dealings with the firm etc. if yes,
details may be given at (d) below__________

(d) Duration and nature of the official dealing

With the firm________________________

(e) Name of the job/post offered___________

(f) Whether post was advertised if not

How offer made (attach newspaper
Cutting of the advertisement and
A copy of the offer of appointment,
If any________________________________

(g) Description of the duties of the post/job___________

(h) Remuneration offered for the post/job____________

(i) If proposing to set up practice, indicate:

(a) professional qualification

in the field of practice_____________
(b) Nature of proposed practice____________

8. Any information which the applicant desires to

Furnish in support of his request__________________

9. Declaration:

I hereby declare that

(i) the employment which I propose to take up will not bring me into conflict with
the Govt.]

(ii) My commercial duties will not be such that my previous official position or
knowledge or experience under Govt. could be used to give my proposed
employed an unfair advantage.

(iii) My commercial duties will not involve liaison or contact with the Govt.
Departments.

Station: Signature of the Pensioner with address

Date :

Appendix –II

Rule 10 of the Central Civil Services (Pension) Rules, 1972

10. Commercial employment after retirement:

(1) If a pensioner whom 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 by submitting an
application. 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) Subject to the provisions of sub-rule (3), the Government may, by order in
writing on the 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.
(3) In granting or refusing permission under sub-rule (2) to a pensioner for taking
up 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 it 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.

(4) where within a period of ninety days of the date of receipt of an application
under sub-rule (3) the Government does not refuse to grant the permission
applied for or does not communicate the refusal to the applicant, the Government
shall be deemed to have granted the permission applied for;

Provided that in any case where defective or insufficient information is furnished

by the applicant and it becomes necessary for Government to seek further
clarifications and or information from him, the period of 90 days shall be counted
from the date on which the defects have been removed and complete information
has been furnished by the applicant.

(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:

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.

(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.

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

(8) In 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, firm or individual engaged in trading, commercial, industrial,
financial or professional business and includes also Directorship of such
company and parternership 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 advisor

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 qualification but the matters in respect of which such
practice is to be set up or such as are likely to give his clients an unfair
advantage by reasons of his previous official position, or

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

Explanation: For the purpose of this clause, the expression "employment under a
cooperative 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 re-

employed after retirement, without any break, either in the same or in other
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.

Appendix-III

No. 27012/24/85-Estt(A)
Government of India
Ministry of Personnel, PG & Pensions
Department of Personnel & Training

New Delhi 19th August, 1986

OFFICE MEMORANDUM

Subject: Commercial employment after retirement of Group ‘A’ officers – Fresh

guidelines regarding.

Rule 10 of CCS (Pension) Rules, 1972 regulates commercial employment of

Group ‘A’ officers of Central services within two years of their retirement. Similar
provision in the Indian Railway establishment code govern retired Group ‘A’
officers of Railway services. Setting up a ‘Consultancy’ is also included in the
definition of the phrase "Commercial Employment" is rule 10(8) of the CCS
(Pension) Rules, 1972. However, the setting up of consultancy practice is mainly
related to the retired officer’s previous official position and the knowledge and
experience gained by him during his services under Government. Similar is the
position in the case of retired officers governed by Rule 11 of CCS(Pension)
rules, 1972, in the matter of setting up a legal practice in matters relating to
income tax , customs and central excise etc. Officers of Tribunals, Appellate
Boards, etc. who exercise judicial or quasi-judicial powers vested in them by the
Acts of parliament setting up such Tribunals, Boards etc. and the rules framed
thereunder, also seek permission after their retirement to set up practice in
matters with which they are concerned while in services. The matter has,
therefore, been reviewed in detail and the following decisions taken :-

(i) A liberal view may be taken in considering request for permission to take up
specific job under specific employers, as distinct from request to set up
consultancy practice, provided, however, the application satisfies the criteria laid
down in rule 10 (3) of the CCS(Pension ) Rule, 1972.

(ii) Requests for permission to set up consultancy practice should be considered

very strictly. For this purpose, the retired officer should be asked to furnish a
complete list of all companies, firm etc. with which he had dealings while in
service. The grant of permission for consultancy practice shall also be subject to
the following conditions;

(a) The retired officer shall not accept any consultancy from nor deal in any other
manner with the Ministries/Departments in which he was employed or any
organization with which he had official contact while in service under the
Government.

(b) The retired officer shall not take up consultancy work on behalf of or with any
company/ firm/individual in respect of any contract or proposed contract with the
Ministries/ Departments in which he was employed or any undertaking or body
under the control of the said Ministries/ Departments in which he was employed.

(c) That the conditions imposed in granting permission shall remain operative for
a period of two years from he date retirement.

(iii) A retired officer who had held posts is Authorities, Boards, Tribunals etc.
involving the discharge of judicial or quasi-judicial functions shall not be given
permission to set up any practice which will require appearance before the
Authority, Board, Tribunal etc. having jurisdiction over the areas which were
under the jurisdiction of the retired officer during his service.

(iv) The cases of retired officers of Indian Revenue Service and other officers
retiring from the Ministry of Finance, Department of Revenue, will be decided by
the Ministry of Finance under rule 11 of the CCS(Pension) Rules, 1972.
However, before a final decision is taken by the Ministry of Finance, Department
of Revenue, a reference shall be made to Department of Personnel & Training so
that a view could also be taken with reference to the criteria prescribed under
Rule 10of CCS (Pension) Rules, 1972 and a composite decision communicated
to the applicant. Such a reference will however be necessary only in the cases of
officers retiring from the posts in the Senior Management Level (Joint Secretary
and above), as is the practice in regard to cases falling within the purview of rule
10 of CCS(Pension) Rules, 1972.
(v) If any officer submits his application for permission for post-retirement
commercial employment, before his retirement, such application shall not be
entertained. The applicant should be advised to apply a fresh after his retirement.

(vi) A request for permission to accept Directorship in Companies may be

considered liberally if it carries with it only the usual Sitting Fees and Travelling
Allowances. However, if any form of compensation, including remuneration or
commission is attached to the Directorship, it shall be treated as Consultancy
and dealt with accordingly, as indicated at item (ii) above.

2. Ministry of Finance, etc. are requested to make a careful note of the above
guidelines for their guidance and compliance.

Appendix IV

Check-List

Subject: Grant of permission to retired Group ‘A’ Officers for commercial

employment after retirement–case of Shri ……

…………

(1) Date of receipt of application

in Office/Ministry/Department.

(2) Date of expiry of 60 days

From the date of receipt of application.

(3) Comments with reference to the

Prescribed criteria.

Criteria Comments
The nature of the employment proposed to be taken up and the
(a)antecedent of the employer (If the firm concerned was black listed
by Government, this should be clearly indicated)
Are his duties in the employment which He proposes to take up
(b)
such as might bring him Into conflict with Govt.
Did the pensioner while in service have Any such dealing with the
employer under Whom he proposes to seek employment as might
(c)
afford a reasonable basis for the suspicion that such pensioner had
shown favours to such employer?
Do the duties of the commercial employment Proposed involve
(d)
liaison or contact work with Government Departments?
 Will his commercial duties be such that His previous official position
(e)or knowledge or experience under Government could be used to
give the proposed employer unfair advantage.
(f) Any other relevant factor?

(4) Has the case been examined from the vigilance angle?

(5) The CR dossier of the applicant is attached/may be

attached by the Ministry/Department of ………

(6) Recommendation regarding grant or refusal of permission

including conditions, if any, subject to which permission
may be granted.

Signature of the authority forwarding

Recommending the case

Name

Designation

Office Address.

Appendix V

Register for keeping a watch on disposal of cases for grant of permission to

Group ‘A’ Officers for Commercial emoluments after retirement.

S.No. Name of Date Date Date of receipt in Date of Date of Date of File
applicant of Ist when Ministry/Department sending return final No
receipt 60 to from reply to
in days DP&AR DP&AR applicant
Govt. from
Ist
receipt
expire

1 2 3 4 5 6 7 8 9
 Appendix VI

Register to be maintained by the Establishment Division for keeping a watch on

disposal of cases received from other Ministries/Departments

SNo Name of Name of Nature of Date Date of Date of return Whether File
applicant sponsoring commercial when receipt in to sponsoring permission No
Ministry/ employment 60 DP&AR Ministry/ granted or
Department days Department refused
from Ist
receipt
in
Govt.
expire

1 2 3 4 5 6 7 8 9

INSTRUCTIONS OF POST RETIREMENT COMMERCIAL EMPLOYMENT

No. 27012/4/97-Estt(A)

GOVERNMENT OF INDIA

MINISTRY OF PERSONNEL, PUBLIC GRIEVANCES & PENSIONS

DEPARTMENT OF PERSONNEL AND TRAINING

New Delhi, Dated the 2nd December, 1997

OFFICE - MEMORANDUM

Subject: Procedure for dealing with applications submitted by Central

Services Pensioners for undertaking commercial employment within 2
years of retirement.

The undersigned is directed to say that in terms of Rule 10 of the Central Civil
Services (Pension) Rules, 1972, if a pensioner, who, immediately before
retirement was a member of Central Service Group ‘A’, proposes to undertake
commercial employment within 2 years of retirement, he is required to obtain the
previous sanction of the Government. The procedure for dealing with applications
submitted by Central Services Pensioners for permission to accept employment
was prescribed in this Department’s OM No. 27012/24/88-Estt(A), dated
29.3.1989.

2. Government have since revised the pay scales of Central Government

employees w.e.f. 1.1.96. Consequently, in partial modification of the instructions
contained in this Department’s OM No. 27012/24/88-Estt(A) dated 29.3.1989, the
following procedure would be followed for dealing with applications submitted by
Central Services Pensioners under Rule 10 of the Central Civil Services
(Pension) Rules, 1972, to accept commercial employment within two years of
retirement:-

(i) The applications of pensioners, who immediately before retirement held the
post in the rank of Secretary to the Govt. of India, or, equivalent, and above, and
were drawing pay in the pay scale of Rs. 26000/- fixed or above, would be
considered by the Group of Ministers consisting of the Minister of State
(Personnel) and the Minister-in-charge of the Ministry/Department concerned.
The applications will be finally decided by the Prime Minister. If, however, the
Group of Ministers unanimously agree not to grant permission, the case need not
be submitted to the Prime Minister.

(ii) The applications of pensioners, who immediately before retirement, held the
post in the rank of Joint Secretary to the Govt. of India, and were drawing pay of
Rs. 18400/- p.m., or more, in the pay scale of Rs. 18400-22400, or equivalent,
and above, but below the rank of Secretary to the Govt. of India, would be
considered by the Group of Ministers consisting of Minister of State (Personnel)
and the Minister-in-charge of the concerned Ministry/Department. In the event of
disagreement between the Group of Ministers, the case shall be submitted to the
Prime Minister for orders.

(iii) The applications of pensioners, who immediately before retirement held the
post below the rank of Joint Secretary to the Govt. of India, would be disposed of
by the Ministry/Department concerned after obtaining the orders of the Minister-
in-charge.

3. The Ministry of Finance etc. are requested to bring the above revised
procedure to the notice of all concerned.

4. Hindi version of the OM will follow.

Sd/-
(S.C. Sharma)
 Under Secretary to the Govt. of India.
To
All Ministries/Departments of the Govt. of India.

No. 27012/5/2000-Estt(A)
GOVERNMENT OF INDIA
MINISTRY OF PERSONNEL, PUBLIC GRIEVANCES & PENSIONS
DEPARTMENT OF PERSONNEL AND TRAINING

New Delhi, Dated the 28th February, 2002

OFFICE - MEMORANDUM
Subject: Procedure for grant of permission to the Pensioners for
commercial employment after retirement.
The undersigned is directed to say that rule-10 of the CCS (Pension) Rules, 1972
which regulates the post retirement commercial employment of retired Group ‘A’
officers, has been amended by this Department vide Notification [File No.
27012/5/2000-Estt(A)], dated 30th January, 2002, published vide GSR 75(E), in
the Gazette of India (Extraordinary) in its part II, Section 3, Sub Section (i), on Ist
February, 2002. The Notification came into force on the date of its publication in
the Gazette of India. The copy of the printed Gazette Notification is attached
herewith.
2. Hence, all the requests for post retirement commercial employment received
on or after Ist February, 2002, shall be governed by the amended provision. In
the light of amended provision contained in the Notification referred to above, the
following instruction is issued for information and guidance as well as its
compliance by various Ministries/Departments of the Govt. of India:-
In rule-10 of the Central Civil Services (Pension) Rules, 1972, the sub-rule 4
which provides deemed approval of the Govt. in the cases of failure of sending
intimation about the Government’s rejection of the request of the pensioner for
commercial employment within the period of ninety days (90 days), has been
deleted/omitted.
Ministry of Finance, etc. are requested to note these instructions carefully for
their guidance and compliance.
Sd/-
(SAHADEO RAM)
Deputy Secretary to the Govt. of India.
To
All Ministries/Departments of the Govt. of India.

D.O. No. 27012/3/98-Estt(A)

ARVIND VARMA
SECRETARY Dated: 4.2.1998
Dear Secretary,
As you are aware that Rule 10 of the Central Civil Services (Pension) Rules,
1972, stipulates the conditions of post-retirement commercial employment of
retired Central Services Group ‘A’ officers. Under the aforesaid Rules, an officer
proposing to take up commercial employment before the expiry of two years from
the date of his retirement, is required to obtain the previous sanction of the
Government by submitting an application in the prescribed proforma. The Govt.
is required to communicate its decision on such an application within a period of
90 days of the date of application, complete in all respects, failing which the
Government shall be deemed to have granted the permission applied for.
2. In terms of OM No. 27012/51/93-Estt(A), dated May 9, 1994, an application
that is required to be decided by the Group of Ministers, consisting of the
Minister-in-charge of the administrative Ministry and the Minister of State for
Personnel, Public Grievances and Pensions, should be referred on file to this
Department at least 30 days before the expiry of the time limit of 90 days. In
cases requiring disposal with the approval of the Prime Minister, the reference to
this Department should be made at least 45 days before the expiry of the time
limit of 90 days. In spite of the provision in the statutory rules, which mandates
deemed permission in the absence of any communication to the contrary within
the stipulated period of 90 days, and the time limits laid down by this Department
for reference of such cases, there have been several instances where references
have been made to this Department after the expiry of the stipulated period of 90
days. This has enabled even such retired officers to undertake post-retirement
commercial employment within 2 years of retirement in whose cases the
Government would have been justified in refusing permission.
3. I would, therefore, request you to ensure timely examination of applications,
with reference to the criteria provided for in the rule itself, and communication of
the decision of the Government within the specified period. Where a reference
has to be made for seeking the concurrence/approval of the Minister of state for
Personnel, Public Grievances and Pensions and the Prime Minister, the time
schedule prescribed in this Department’s Office Memorandum dated May 9, 1994
should invariably be adhered to.
With regards,
Yours sincerely,
Sd/-
(ARVIND VARMA)
To
All Secretaries to the Govt. of India