1. Organisation & Functions of Ministry of Defence, Three Services And

1. Organisation & Functions of Ministry of Defence, Three Services and other Organisations under MOD

Introduction

The Government of India is responsible for ensuring the defence of India and every part thereof. The Supreme Command of the Armed Forces vests in the President. The responsibility for national defence rests with the Cabinet. This is discharged through the Ministry of Defence, which provides the policy framework and wherewithal to the Armed Forces to discharge their responsibilities in the context of the defence of the country. The Raksha Mantri (Defence Minister) is the head of the Ministry of Defence. The principal task of the Defence Ministry is to obtain policy directions of the Government on all defence and security related matters and communicate them for implementation to the Services Headquarters, Inter-Services Organisations, Production Establishments and Research and Development Organisations. It is also required to ensure effective implementation of the Government's policy directions and the execution of approved programmes within the allocated resources. Ministry of Defence comprises of four Departments viz. Department of Defence (DOD), Department of Defence Production (DDP), Department of Defence Research & Development (DDR&D) and Department of Ex- Servicemen Welfare and also Finance Division.

Organisational Set-Up And Functions

After independence Ministry of Defence was created under the charge of a Cabinet Minister, and, each Service was placed under its own Commander-in- Chief. In 1955, the Commanders-in-Chief were renamed as the Chief of the Army Staff, the Chief of the Naval Staff and the Chief of the Air Staff. In November 1962, a Department of Defence Production was set up to deal with research, development and production of defence equipment. In November 1965, the Department of Defence Supplies was created for planning and execution of schemes for import substitution of defence requirements. These two Departments were later merged to form the Department of Defence Production and Supplies. In 2004, the name of Department of Defence Production and Supplies was changed to Department of Defence Production. In 1980, the Department of Defence Research and Development was created. In 2004, the Department of Ex-Servicemen Welfare was created.

The Defence Secretary functions as head of the Department of Defence and is additionally responsible for co-ordinating the activities of the four Departments in the Ministry.

The principal task of the Ministry is to frame policy directions on defence and security related matters and communicate them for implementation to the Services Headquarters, Inter-Service Organisations, Production Establishments and Research & Development Organisations. It is required to ensure effective implementation of the Government's policy directions and the execution of approved programmes within the allocated resources.

The principal functions of all the Departments are as follows:

(i) The Department ofDefence deals with the Integrated Defence Staff (IDS) and three Services andvarious Inter-Service Organisations. It is also responsible for the DefenceBudget, establishment matters, defence policy, matters relating to Parliament,defence co-operation with foreign countries and co-ordination of all defencerelated activities. (ii) The Department of Defence Production The Department of Defence Production is headed by a Secretary and deals with matters pertaining to defence production, indigenisation of imported stores, equipment and spares, planning and control of departmental production units of the Ordnance Factory Board and Defence Public Sector Undertakings (DPSUs). (iii) The Department of Defence Research The Department of Defence Research and Development is headed by a Secretary, who is the Scientific Adviser to the Raksha Mantri. Its function is to advise the Government on scientific aspects of military equipment and logistics and the formulation of research, design and development plans for equipment required by the Services.

(iv) The Department of Ex-Servicemen Welfare is headed by a Secretary and deals with all resettlement, welfare and pensionary matters of Ex-Servicemen.

Reforms in Management of Defence

The broad array of challenges both existing and potential to the National Security in the fast changing geo-strategic security environment mandate a periodical re-appraisal of our security procedures to cope with them. The Government, keeping this in view, instituted a comprehensive review of the National Security System in its entirety for the first time in the history of independent India. For details see 'Reforming the National Security System- Recommendations of the Group of Ministers in the NEW ADDITIONS'. The review was carried out by a Group of Ministers (GOM) constituted on April 17, 2000. The GOM consisted of the Home Minister, the Raksha Mantri, the External Affairs Minister and the Finance Minister. The GOM made recommendation regarding reforms in Defence Management. The process of

2 implementation of the recommendations was initiated in 2001. These reforms have brought about improvements in the organizations, structures and processes for the integration of civil and military components. Some of the major reforms are detailed in the following paragraphs.

Integrated Defence Staff: A decision regarding the recommendation of the Group of Ministers for creation of the Chief of Defence Staff (CDS) has not been taken by the Government as yet pending consultation with political parties. However, with a view to ensure higher degree of jointness amongst the Services and attempt inter-service and intra-service prioritization, the Government has set up the Integrated Defence Staff, headed by the Chief of Integrated Staff to Chairman, Chiefs of Staff Committee (CISC), to support the Chiefs of Staff Committee and its Chairman in the optimal performance of their roles and functions. The CISC supervises the Integrated Defence Staff, chairs all multi- Service bodies and the Defence Crisis Management Group (DCMG) and is also responsible for the coordination of long-range plans, five year plans and annual budgetary proposals of the three Services in consultation and co-ordination with the Integrated Services Headquarters. The CISC renders advice to the Government on prioritization for developing force levels and capabilities through restructuring proposals, undertakes net assessment comprising the totality of the national capability, formulates joint doctrines in consultation with Service Headquarters, conceptualises policy and programmes on joint planning and military education for personnel of Defence Services, render advice for evolving responses to non-conventional and unconventional threats to national security and proposes measures to be taken for ensuring the required jointness amongst the Armed Forces and enhancing the efficiency and effectiveness of the planning process through intra and inter-Service prioritization.

Defence Intelligence Agency : The Government has also set up the Defence Intelligence Agency (DIA) under DG DIA to co-ordinate and synergise the intelligence Wings of the Services. The DIA is responsible for providing integrated intelligence inputs to the higher echelons of Defence Management.

Defence Acquisition Council : The Government has set up a Defence Acquisition Council headed by the Raksha Mantri for decision making in regard to the totality of the new planning process, which inter-alia involves according ‘in principle' approval of capital acquisitions in the long term perspective plan and according ‘in principle' approval for each capital acquisition programme. The decisions flowing from the Defence Acquisition Council are to be implemented by the following three Boards:-

(i) Defence Procurement Board headed by the Defence Secretary;

3 (ii) Defence Production Board headed by the Secretary, Defence Production and

(iii) Defence Research & Development Board headed by Secretary Defence Research & Development.

These Boards have been entrusted with specific functions.

A Defence Acquisition Wing headed by Special Secretary (Acquisition) has also been created to assist the Defence Procurement Board in its functioning.

The new structures are intended to facilitate expeditious decision-making in an integrated manner in areas relating to acquisitions for the three Services while at the same time imparting a higher degree of transparency and cost effectiveness to the process of acquisition of equipment, weapon and weapon systems. For Defence Procurement Organisation and Defence Procurement Procedures-02 (June 03 version.

Defence Technology Council (DTC) : Defence Technology Council has been constituted under the Chairmanship of Raksha Mantri by the Government to provide guidance and supervision of growth and promotion of research, development and production related to Defence Technologies. DTC will assist the Defence Acquisition Council in taking holistic decisions on specific Defence Projects related to long term perspective plans and five year plans.

Andaman and Nicobar Command : The first tri-Service Joint Command was established in October 2001 in Andaman and Nicobar under the Commander-in- Chief (C-in-C) who exercises control over all force components of the three Services and the Coast Guard located in Andaman and Nicobar Islands. The C- in-C, Andaman and Nicobar Command reports to the Chairman, Chiefs of Staff Committee.

Management of Strategic Assets : Keeping in view the nuclear, chemical and biological dimensions of our security environment and in keeping with our commitment to no first use of strategic assets, the Government has approved establishment of requisite structures for administering the Strategic Assets and also set up the Strategic Forces Command.

Delegation of Administrative and Financial Powers : Various administrative and financial powers have been delegated to the Integrated Service Headquarters to impart enhanced autonomy in their functioning. Decentralisation of decision-making powers has strengthened and upgraded the decision-making apparatus in the Services. With higher delegation of financial powers, greater efficiency and cost effectiveness with accountability has

4 brought about the transparency desired in the system of defence related expenditure.

HEADQURATERS INTEGRATED DEFENCE STAFF (HQIDS): Integrated Defence Staff (IDS) was created on October 1, 2001 as a sequel to the decision by the Group of Ministers based on Kargil Committee Report. The staff of HQ IDS is provided from three Services, MEA, DRDO, Armed Forces HQ (AFHQ) Civil Services and DoD. IDS is presently functioning as staff in the advisory mode to the Chairman COSC, and is headed by Chief of Integrated Defence Staff to Chairman COSC (CISC).

Jointness within the Services : One of the primary objectives of HQ IDS is to promote jointness within the Services. Jointness is aimed at obtaining optimal operational and cost effectiveness in the current and envisaged future geopolitical environment. It will also enable the services to operate seamlessly with common understanding of missions and joint strategies to accomplish them. This would entail bringing about transformation and reforms within the armed forces. The vertical and horizontal aspects of integration have been identified and are being put into place in an organized and logical manner through the establishment of inter-service committees, functioning in and with HQ IDS.

SERVICES HEADQUARTERS

The three Services Headquarters, viz., the Army Headquarters, the Naval Headquarters and the Air Headquarters function under the Chief of the Army Staff (COAS), the Chief of the Naval Staff (CNS) and the Chief of the Air Staff (CAS) respectively. They are assisted by their Principal Staff Officers (PSOs). The Inter-Service Organisations, under the Department of Defence are responsible for carrying out tasks related to common needs of the three Services such as medical care, public relations and personnel management of civilian staff in the Defence Headquarters.

A number of Committees dealing with defence related activities assist the Raksha Mantri. The Chiefs of Staff Committee is a forum for the Service Chiefs to discuss matters having a bearing on the activities of the Services and also to advise the Ministry. The position of Chairman of the Chiefs of Staff Committee devolves on the longest serving Chief of Staff, and consequently rotates amongst the three Services. To facilitate the work of the Chiefs of Staff Committee, a number of sub-committees have been established.

The Finance Division of the Ministry of Defence Finance Division in the Ministry of Defence deals with all matters having financial implications. It is fully integrated with the Ministry of Defence and performs an advisory role.

5 To achieve greater efficiency in administration, expeditious disposal and transparency, Ministry of Defence exercises financial powers in consultation with the Finance Division as per the procedure laid down in the Defence Procurement Procedure 2006 and Defence Procurement Manual 2006. The Defence Procurement Procedure deals with capital acquisitions and Defence Procurement Manual deals with revenue procurements.

E-Procurements is one of the Thrust Areas approved by the Prime Minister for the year 2007. Accordingly, steps have been taken to enhance the scope of e- procurement in DRDO. This would facilitate tender inquiries being sent electronically to a bigger than usual set of vendors and improve competition/ transparency as well as cut down delays. Pilot projects for procurement of common user items have been taken up in five administrative units and designated officers have been entrusted with digital signatures.

Organisation of Services:

The Indian Armed Forces are the military forces of the Republic of India encompassing the Indian Army, the Indian Navy, the Indian Air Force and various other inter-service institutions.

The IAF is one of the world's largest military force, with roughly 1.32 million active standing army, with 2.14 million reserve forces and 1.3 million paramilitary forces thus giving India the third-largest active troops in the world as of 2006 after the People's Liberation Army and US Armed Forces. Auxiliary services include the Indian Coast Guard, the Central Paramilitary Forces (CPF) and the Strategic Forces Command. India's official defense budget stands at US$36 billion for FY2011 but the actual spending on the armed forces is estimated to be much higher than that. Undergoing rapid expansion and modernization, the Indian Armed Forces plans to have an active military space program and is currently developing a missile defense shield and nuclear triad capability. The Armed Forces of India possess nuclear weapons and operate short and intermediate-range ballistic missiles as well as nuclear-capable aircraft, and naval vessels. India is the world's largest arms importer and ranks among the top thirty in arms export. Currently, India imports close to 70% of its weapons requirements largely from Russia, Israel, and more recently, the United States. The country’s defence expenditure will be around US$112 billion by 2016.

India is currently moving to build a 9,970.16 crore (US$2.2 billion) dedicated, highly secure and state-of-the-art optical fiber cable (OFC) network for the Army, Navy and Air Force. This will be one of the world's largest, closed user

6 group (CUG) networks for exclusive use by the million-plus personnel of the Indian armed forces.

Military history of India

India has one of the longest military history dating back several millennia. The first reference of armies is found in the Vedas as well as the epics Ramayana and Mahabaratha.

Indian Army

India maintains the third-largest military force in the world, which includes Indian Army, Navy, Air Force and auxiliary forces such as the Paramilitary Forces, the Coast Guard, and the Strategic Forces Command.. It is a completely voluntary service, the military draft having never been imposed in India. The army has rich combat experience in diverse terrains, due to India's diverse geography, and also has a distinguished history of serving in United Nations peacekeeping operations. Initially, the army's main objective was to defend the nation's frontiers. However, over the years, the army has also taken up the responsibility of providing internal security, especially in insurgent-hit Kashmir and north-east.

The force is headed by the Chief of Army Staff of the Indian Army, currently General V K Singh. The highest rank in the Indian Army is Field Marshal, but it is a largely ceremonial rank and appointments are made by the President of India, on the advice of the Union Cabinet of Ministers, only in exceptional circumstances. (See Field Marshal (India)). Late General S.H.F.J. Manekshaw and the late General K.M. Cariappa are the only two officers who have attained this rank.

The Indian Army has seen military action during the First Kashmir War, Operation Polo, the Sino-Indian War, the Second Kashmir War, the Indo- Pakistani War of 1971, the Sri Lankan Civil War and the Kargil War. Currently, the Indian army has dedicated one brigade of troops to the UN's standby arrangements. Through its large, sustained troop commitments India has come in for much praise for taking part in difficult operations for prolonged periods. The Indian Army has participated in several UN peacekeeping operations, including the ones in Cyprus, Lebanon, Congo, Angola, Cambodia, Vietnam, Namibia, El Salvador, Liberia, Mozambique and Somalia. The army also

7 provided a paramedical unit to facilitate the withdrawal of the sick and wounded in Korea. Currently, the Indian Army is seeking to massively modernize its equipment through various procurement programs. In addition, it has also embarked on an infantry modernization program known as Futuristic Infantry Soldier As a System (F-INSAS).

8 Indian Navy

The Indian Navy is the naval branch of the armed forces of India. With 67,000 men and women, including 5,000 naval aviation personnel and 2,000 Marine Commandos (MARCOS), it is the world's third largest navy.

The Indian Navy currently operates around 170 vessels, including the aircraft carrier INS Viraat. In recent years, India has started many ambitious projects to bolster its maritime capabilities including efforts to acquire ships from foreign countries.

In recent years, the Indian Navy has undergone extensive modernization and expansion with an intention to increase its capabilities as a recognized blue- water navy. It is fairly advanced in terms of technology and is in control of one of two Asian aircraft carriers. Two more aircraft carriers are currently being produced. The ships of the Indian Navy are of Indian and foreign origin. In addition, three ballistic missile submarine are to enter service by 2010 end. It is also only one of the six navies in the world that has nuclear capabilities. Others include US, Russia, China, France and the UK. In addition it is in command of the BrahMos which is the fastest cruise missile in the world with speeds of 2.8 Mach.

Indian Navy's marine commandos during a training exercise in the Philippine Sea.

In its maritime doctrine, the Indian Navy establishes its role in providing support to maritime neighbours during natural disasters. This was demonstrated during the Asian tsunami crisis during which the Indian Navy sent 35 ships to support relief efforts in neighbouring countries. The Indian navy has taken part in UN missions in the coast of Somalia and has provided security to an African Union summit held in Mozambique. The Indian Navy is increasing its capabilities as a true blue-water navy; the Indian Navy's doctrine states that this is for the collective good of nations.

Indian Navy is expected to spend about US$40 billion on military modernization from 2008 to 2013. The modernization program includes INS Vikramaditya, Vikrant class aircraft carrier, Lease of Akula-II class submarine, Arihant class nuclear-powered submarines, Shivalik class frigate, Kolkata class destroyer, Scorpène class submarine, Improved Talwar class frigate and eight P- 8 Poseidon .

9 Indian Air Force

IAF engineers conduct post-flight maintenance on Su-30 MKI fighters following a Red Flag mission in Nevada.

With a strength of approximately 170,000 personnel, and 1,309 aircraft in active service, the Indian Air Force is the fourth largest air force in the world. In recent years, the IAF has undertaken an ambitious expansion and modernization program and is increasingly used for India's power projection beyond South Asia. Historically, the IAF has generally relied on Soviet, British, Israeli and French military craft and technology to support its growth. In recent times however, India has manufactured its own aircraft, including the HAL Tejas, a 4th generation fighter, and the HAL Dhruv, a multi-role helicopter, which has been exported to several countries, including Israel, Burma, Nepal and Ecuador. India also maintains UAV squadrons which can be used to carry out ground attacks and aerial surveillance.

India is testing its own long range BVR air to air missile named Astra and also building a Medium Altitude Long Endurance Unmanned Aerial Vehicle (UAV) called Rustom. India and Russia are building number of next generation aircraft like 5th generation stealth aircraft called Fifth Generation Fighter Aircraft and medium-lift military transport aircraft called Multirole Transport Aircraft.

Indian Coast Guard

The Indian Coast Guard is the maritime Military Force created to guard Republic of India's vast coastline. It was created on 18 August 1978 as an independent entity as per the Coast Guard Act. its primary objective is to guard India's vast coastline and operates under the effective control of the Ministry of Defense.

The coast guard works closely with the Indian Navy and the Indian Customs Department, and is usually headed by a naval officer of the rank of Vice- Admiral. India's coast guard has a large number of fast craft including hovercrafts and hydrofoils. They patrol the seas and river mouths. The coast guard has performed a number of commendable tasks of rescuing distressed personnel. It has also apprehended pirates on high seas and cleaned up oil spills. Heavy patrolling of sensitive areas such as Karnataka, Gujarat, West Bengal and Mumbai have resulted in the nabbing of a large number of smugglers and illegal immigrants.

10 2. Organization, structure, objective , role & functions of DAD and Regional/Functional Pr. Controllers/Controllers under DAD

DAD ( Defence Accounts Department ) with the Controller General of Defence Accounts at its head, functions under the administrative control of the Financial Adviser (Defence Services).

RESPONSIBLE FOR:

The Defence Accounts Department is responsible for the following duties: -

(i) Maintenance of the pay accounts of Commissioned Officers and other Ranks of the Army. (ii) Payment and internal audit of all charges pertaining to the Armed Forces, Defence Civilians and Ordnance and Clothing Factories, including bills for supplies and Services rendered, Pay and Allowan- ces, miscellaneous charges, Pension, works, etc. (iii) The accounting for and adjustment of receipts and of all expenditure pertaining to the Defence Services, and supply of compiled figures to the Administrative and Financial authorities for the purposes of budgeting and control of expenditure. (iv) Internal audit of store accounts maintained by units and formations (including Ordnance Depots, Workshop and Storage Depots) of the Army, Air Force and Navy. (v) Maintenance of the store and manufacturing accounts of Ordnance and clothing factories and Naval Dockyard. (vi) Maintenance of certain accounts relating to the MES and construction accounts of operational works executed by the Engineer Regiments, acid audit of the construction and other accounts relating to Engineer Services kept by MES authorities. (vii) Provision of funds, receiving monthly statement of receipts and charges, compiling monthly accounts, internal audit including audit of commercial accounts of the Canteen Stores Department. (viii) The D.A.D. is also responsible for payment of pay and allowances in respect of General Reserve Engineer Force personnel and maintenance of their Fund Accounts and maintenance of Construction Accounts for works executed by Border Roads organisation. The detailed audit of Accounts maintained by G.R.E.F. units and formations is conducted by the Controllers of Defence Accounts concerned who act as Sub- Accounts Officers of the Controller of Accounts, Ministry of Shipping and Transport and State Accountant Generals (in respect of works within the jurisdiction of the States executed by the GREF).

OBJECTIVE

Objectives of the Defence Accounts Department are :-

1. To pay the dues of personnel, units and formations of Defence Services and D.A.D. as per entitlement and by due dates. 2. To pay for and adjust promptly all supplies and services rendered to the Defence Services. 3. To ensure that the pay and provident fund accounts of JCOs, ORs and NCsE (Including Pay Accounts of non gazetted civilians serving in operational areas) are maintened properly and correctly by the P.A.Os. 4. Personal dues of employees under their payment are paid correctly and promptly. 5. To provide necessary accounting, financial and internal audit information and advice to the authorities of the Defence Services to help ther~n in the discharge of their Management functions. 6. To maintain the efficiency of the Defence Accounts Department at a high level. Objectives of CGDA's office are to ensure that :-

(i) The activities of Defence Accounts Department are organised to meet the needs of Defence Services consistent with the policy of Government. (ii) Adequate and upto date procedures are prescribed for efficient discharge of the functions of the Department in the fields of Accounts, Internal Audit and Finanacial advice. (iii) Proper planning is made in respect of personnel and facilities required for the efficient functioning .

The duties of the Defence Accounts Department are broadly audit, payment and accounting of all charges pertaining to the Armed Forces, including bills for supplies and services rendered and for construction/repair works, pay and allowances miscellaneous charges, pensions, etc.

The Department is also responsible for the audit of cash and stores account kept by the various units and formations (including arsenals, workshops and storage depots) in the three services and maintenance of pay accounts of Army Officers and combatants of Army.

12 The manufacturing accounts of Ordnance factories and the Naval Dockyard and the store accounts of the Ordnance factories are also kept by the Defence Accounts Department.

They also maintain Accounts relating to works services and audit the construction and other accounts relating to works project maintained by Military Engineer Services.

In addition to the duties mentioned above, the Controller of Defence Accounts functions as Local Financial Advisers to the General Officers Commanding-in- Chief of Commands, Area Commanders, etc.

The Defence Accounts Department comes under the Ministry of Defence with the Controller General of Defence Accounts as the Head of the Department. The organization of the Defence Accounts Department corresponds broadly to the organization of the three Services.

In addition, it also caters for the Ordnance Factories. Defence Research & Development Organisation, the Canteen Store Department, the Coast Guard, the Border Roads Organisation and Inter-Service Organisations under the Ministry of Defence.

The field organization of the department dealing with the Army has been structured by and large on the pattern of Army Commands/Areas. The location of these Controller Offices is in close proximity to the Command Headquarters/Area Headquarters in order to enable them to render prompt services to the units/formations located in these areas. Under some of the Controllers’ offices, there are also Area Accounts Offices to render prompt services to the Sub-Areas. In addition, there are Local Audit Offices to audit the accounts of the units and formations and one Unit Accountants (AAO) is attached to each Garrison Engineer. The Pay Accounts Offices (JCOS/Ors) are also under the jurisdiction of the nearest Regional Controller. In all there are 12 Regional Controllers/Pr Controllers. In addition, one Pr Controller of Defence Accounts at Pune specifically deals with the pay and allowances of the Commissioned officers.

The remaining Controllers’ Office are patterned to serve a particular Service or function except for PCDA (Headquarters) at Delhi which covers all the Services, Inter-Services Organisations and the Ministry of Defence.

13 The Principal Controller of Defence Accounts covering the Navy is located at Bombay.

In the case of the Air Force, there are two Controller of Defence Accounts, one Principal Controller at Dehra Dun covering all the Commands and field areas and one Controller at New Delhi covering the units located in Delhi including Air Headquarters.

The Defence Research & Development Organisation has expanded considerably and there are a number of projects being handled by the Defence Laboratories. Accordingly, there is a Principal Controller for R&D at New Delhi and one Controller each at Bangalore and Hyderabad to deal with all matters connected with the R&D Organisation with regional Joint Controller of R&D functioning at Pune, Dehradun and Balasore.

For the Canteen Stores Department, the Controller is located at Bombay. Similarly one Controller is separately established at Delhi for Border Roads.

The organization of the Ordnance Factories has 39 Factories under the Ordnance Factories Board. The entire payments, accounting, internal audit and financial advice functions for this factory is looked after by the Principal Controller of Accounts (Factories) at Kolkata. A Controller of Accounts in the Headquarters and ten Controllers (Fys) located alongside major Ordnance and Clothing Factories assist him. This complex accounts set up is a highly specialized segment of the department dealing with the cost accounts of the Ordnance and Clothing Factories.

The pension establishment of Defence has been growing substantially. Consequently, the responsibility of the department to determine the entitlement and make prompt payments of pensions has increased. In order to handle this complex task, there is a Principal Controller of Defence Accounts located at Allahabad to deal with the sanctions of pensions in respect of the Service personnel (excluding Air Force and Navy personnel which are sanctioned by PCDA (Air Force) and PCDA (Navy) respectively) Defence civilians and the staff of the Defence Accounts Department. He is assisted by a Controller of Defence Accounts in the Main Office.

In addition, there is a Controller at Meerut dealing with the disbursement of pensions through 49 Defence Pension Disbursing Offices (DPDOs) located in

14 various States. 11 DPDOs also function under the CDA (Chenai), who is responsible for disbursement of pension in four Southern States.

The General Provident Fund Accounts of the civilian personnel of the Army as well as the staff of the Defence Accounts Department are maintained by the Controller of Defence Accounts (Funds). The GPF Accounts of other defence civilians are maintained by the concerned functional Controllers such as Controllers of Finance & Accounts (Fys), Principal Controller of Defence Accounts (R&D), PCDA (Navy) and PCDA (Border Roads).

In addition, there a NADFM at Pune and 4 RTCs at Lucknow, Bangalore, Meerut & Kolkata to take care of the training requirements of the Officers and staff of the department.

The Principal Controller of Defence Accounts (Headquarters) New Delhi deals with the pay and allowances, traveling allowance claims and fund accounts of civilian staff of Ministry of Defence, the Army and Navy Headquarters and the Inter-Services Organisations located at Delhi. Claims pertaining to contingent and miscellaneous charges of the above said organizations are also dealt with by this Controller. In addition, this Controller also handles all work relating to payments of foreign contracts including contracts entered into by the Department of Defence supply, payments for purchases made by Army Purchase Organisation and the work relating to London Account Current.

The Controller General of Defence Accounts is incharge of the Headquarters Office of the Defence Accounts Department.

He issues necessary instructions to Controllers of Defence Accounts in matters relating to maintenance and internal audit of accounts, accounts and audit procedure, classification of receipt and charges, etc., either on his own responsibility or after taking orders of the Government of India if necessary.

He gives audit rulings, in consultation with the Ministry of Defence (Finance) where necessary, on doubtful points arising from internal audit and referred to him by the Controllers of Defence Accounts.

These audit rulings refer to the internal audit exercised by the Defence Accounts Department and not to statutory audit exercised by the D.G.A.D.S. on behalf of the Comptroller and Auditor General.

15 He assists the Government of India with advice on all questions of audit and accounts procedure relating to Defence expenditure which may be referred to him.

He maintains upto date and relevant information relating to personnel management, assesses the requirements of officers and establishment for the whole Department and posts them to the various offices according to their requirements.

He also sends at his discretion officers and staff on deputation to the Ministries and other Government Departments and Public Sector Undertakings.

He co-ordinates and pursues with the Government the projects of office and residential accommodation required by the Department at various stations.

He coordinates the funds requirements of various Controllers' organisations, prepares budget for the Department, makes budgetory allocation of funds to the Controllers anc~ watches utilisation.

He conducts regular inspection of offices of the DAD including his own Headquarters office.

He exercises security over entries made in the gradation pages of the Annual Armed Forces List.

He prepares an Annual Consolidated Balanced Accounts of Defence Services Receipts and Charges and sends them to the Director General of Audit, Defence Services, whc, after check, endorses his audit certificate thereon and passes it on to the Comptroller and Auditor General.

He prepares certain subsidiary statements in connection with the Appropriation Accounts as prescribed in Defence Audit Code and submits them to the Financial Adviser, Defence Services.

He also renders annually to the Financial Adviser, Defence Services, an Audit certificate on the accounts of the Defence Services.

He is the Principal Accounting Officer for the Civil Estimates of the Mlinistry of Defence.

16 He prepares the Appropriation Accounts of the above Estimates arad sends the same to the Financial Adviser (Defence Services) and the Defence Secretary for onward transmission to the Controller General of Accounts and Accountant General (Central Revenues).

He also prepares the statement of central transactions in respect of Civil Estimates and forward it to the Controller General of Accounts.

He prepares the portion of the combined Finance and Revenue Accounts pertaining to the Defence Services and submits it to the Comptroller and Auditor General for incorporation in the combined Finance and Revenue Accounts of the Central and State Governments in India.

Organization Chart at CGDA

18 ORGANISATION AND FUNCTIONS OF REGIONAL CONTROLLERS

The CGDA (Controller General of Defence Accounts) is the head of the Defence Accounts Department and functions on behalf of the Secretary Defence (Finance) / Financial Adviser, Defence Services as the Chief Authority in all matters affecting internal audit and accounting in respect of expenditure pertaining to the Defence Services.

Under the organizational setup of Controller General of Defence Accounts, Principal/ Controllers are divided into two categories:

1. Regional Controllers and

2. Functional Controllers

The following 12 (twelve) Principal /Controller of Defence Accounts are responsible for payment, audit, account and advice to army units and formations.

PRINCIPAL /CONTROLLERS OF DEFENCE ACCOUNTS (PCDA/CDA) (i) NORTHERN COMMANDS, JAMMU (ii) CENTRAL COMMANDS, LUCKNOW (iii) WESTERN COMMANDS, CHANDIGARH (iv) SOUTHERN COMMANDS, PUNE (v) NORTH WEST COMMAND, JAIPUR (vi) (ARMY) MEERUT, (vii) JABALPUR, (viii) PATNA, (ix) GUWAHATI,

19 (x) BANGALORE, (xi) MADRAS AND (xii) SECUNDERABAD

OBJECTIVES OF REGIONAL CONTROLLERS ARE:-

(i) To pay the dues of personnel, units and formations of Defence Services and D.A.D. as per entitlement and by due dates. (ii) To pay for and adjust promptly all supplies and services rendered to the Defence Services. (iii) To ensure that the pay and provident fund accounts of JCOs, ORs and NCsE (Including Pay Accounts of non gazetted civilians serving in operational areas) are maintained properly and correctly by the P.A.Os. (iv) Personal dues of employees under their payment are paid correctly and promptly. (v) To provide necessary accounting, financial and internal audit information and advice to the authorities of the Defence Services to help them in the discharge of their Management functions (vi) To maintain the efficiency of the Defence Accounts Department at a high level.

ROLE AND FUNCTIONS OF REGIONAL CONTROLLERS :

These Controllers are responsible for-

 all work connected with audit, payment, classification and accounting of bills relating to pay and allowances, T.A., etc, of civilian officers and subordinates, miscellaneous allowances, contingencies, payment of bills for stores, supplies and works,  local audit of the stores and MES accounts and the  inspection of cash accounts of units and formations in the areas under their audit jurisdiction.

These Controllers are the Chief authority for accounts and internal audit of all Army formations including MES in their respective Commands and may over-rule an audit decision by any of their subordinate officers.

They also assist the G.O.C.-in-Chief, Area and Sub Area Commanders in the preparation of all estimates and furnish them regularly with such statistics relating to accounts as they may require for carrying out a systematic review of

20 expenditure under locally controlled Heads, with the object of restricting expenditure within reasonable limits, of avoiding unnecessary expenditure and of utilization of savings towards objects of importance in maintaining the efficiency of the Defence Services.

The Regional CsDA are also responsible for

(i) The maintenance of the pay accounts of JCOs, ORs and NCs (E) and civilians on the War system of pay accounting and internal audit thereof. (ii) Payment of conveyance allowance and road mileage claims of Other Ranks and rail fares of recruits. (iii) The audit of Field Irnprest Accounts rendered by Field Imprest Holders. (iv) The supply of Funds to Officers-in-charge. Record offices for remitting family allotments, terminal credit balances of non-effective personnel and payment of retaining fees of reservists etc. and audit of accounts rendered by them in connection with these funds. (v) The maintenance of AFPP Fund Accounts of JCOs/ORs and other than those maintained by the CDA (Funds)

ORGNISATION AND FUNCTIONS OF FUNCTIONAL CONTROLLERS:

PRINCIPAL CONTROLLER OF DEFENCE CCOUNTS(PENSION)

Functions: (i) To grant pensionary (including commutation) awards as admissible under rules correctly and promptly by the due date. (ii) That entitlements of pensions are correctly worked out and paid. (iii) That amounts paid on account of pensionary benefits are correctly and expeditiously compiled to the relevant heads of accounts.

CONTROLLER OF DEFENCE ACCOUNT (FUNDS)

CDA (Funds) Meerut is an integral part of Defence Accounts Department, headed by Controller General of Defence Accounts, functioning under the aegis of Ministry of Defence. It is committed to serve approximately 2.2 lakh Defence Civilian GPF subscribers. The organisation ensures correct and efficient maintenance of fund accounts, prompt payment in the event of subscribers becoming non-effective, early settlement of discrepancies in the

21 GPF accounts of subscribers and issuance of ‘Annual Statement of Fund Accounts’.

Fund Accounting is based on data input of credits/debits received from various Distributed Data Processing (DDP) Controllers. At present data in r/o Non-DAD subscribers is received from fifteen (15) DDP Controllers.

The C.D.A. (Funds) is responsible for maintaining the accounts of the following funds:

(i) General Provident Fund (Defence Services).

(ii) Defence services Officers' Provident Fund. (Other than those of Army Officers).

(iii)Armed Forces Personnel Provident Fund in respect of Honorary Commissioned Officers, erstwhile civilian clerks awarded combatant status during the last World War and gentleman cadets, JCOs/ORs lent to civil Departments and personnel paid by PAO (ORs) President's Body Guard, New Delhi. (iv)Indian Ordnance Factories Workmen's Provident Fund in respect of subscribers other than those whose funds accounts are maintained by the Chief Controller of Accounts (Factories}, Calcutta.

CONTROLLER OF DEFENCE ACCOUNTS (PENSION DISBURSEMENT)

The CDA (PD) Meerut is responsible for the disbursement of Pension sanctioned to the personnel of three Services and the Defence Accounts Department. For this purpose, Defence Pension Disbursing Offices (DPDO) have been opened in the States of Jammu & Kashmir, Himachal Pradesh, Haryana, Punjab, Rajasthan, Uttar Pradesh, West Bengal, Andhra Pradesh, Karnataka, Kerala, Tamil Nadu and Union Territories of Delhi and Chandigarh.

He is also responsible for

(i) All matters connected with Recruitment, Posting, Promotion, Confirmation, Transfer, Discipline, Leave, Maintenance of Service Books, Annual Confidential Report, Office Contingencies, House Keeping and Budget etc. ire respect of the staff servinG under him.

(ii) All matters connected with investigation, settlement and follow up action on complaints from pen sinners/other sources.

(iii) All matters connected with inspection of DPDO offices.

(iv) All matters connected with vigilance cases, spot checking of payments in the DPDO offices and processing of vigilance reports.

(v) All matters connected with the implementation and monitoring of New Banking Scheme.

Pr CONTROLLER OF DEFENCE ACCOUNTS (OFFICERS)

The Pr C.D.A. (Officers) is responsible for the maintenance and audit of the pay accounts and payment and audit of personal allowances (including travelling allowances) of all officers serving with the Regular and the Territorial Army, and also of civilian gazetted officers searing in field service or concessional areas. He is also responsible for maintaining the Defence Services Officers Provident Fund Accounts of Army Officers. He is also responsible for the audit and clearance of Field Cashier cash accounts. He acts as Financial Adviser to all Commands and other Gower formations on all matters of pay and personal allowances (including travelling allowance) of Army Commissioned Officers.

Objectives:

To ensure that pay and Provident Fund Accounts of Army Officers and pay accounts of Civilian officers serving in Field areas are maintained and paid promptly and correctly.

PRINCIPAL CONTROLLER OF DEFENCE ACCOUNTS (NAVY)

Principal Controller of Defence Accounts (Navy) is responsible for payments, accounting and internal audit of Expenditure and Receipts of Indian Navy and Coast Guard and has been in service for over last 100 years. What was then called the Principal Controller of Marine Accounts and Financial Advisor to

23 Director of Royal Indian Marine and the Flag Officer Commanding is known as Principal Controller of Defence Accounts (Navy) since 1951.

PCDA (Navy) has constantly strived for excellence in performance and greater customer satisfaction. We have streamlined our procedures and are in tune with the dynamic changes occurring from time to time. We have modernized by linking our offices at Mumbai, Vishakhapatnam and Kochi through V-Sat, automated our systems and introduced electronic clearance for all payments to personnel and vendors.

Functions of PCDA(N)

Listed below are the functions of the Office of the Principal Controller of Defence Accounts (Navy). Please click on the function description to find the contact details of the officers responsible for the respective functions at various offices and sub-offices of PCDA(N).

Objectives:

To insure that pay and provident Fund Accounts in respect of officers and ratings of the Navy are correctly maintained by the IN Pay office.

PRINCIPAL CONTROLLERS OF DEFENCE ACCOUNTS (Air Force) The PCDA (AF) is responsible for the audit, accounting and adjustment of all receipts and expenditure in respect of Air Force. He provides funds to the Air Force, audits the Pay and allowances of all li-~F Officers and airmen, stores and public fund (cash book) accounts of the Air Force. He acts as the Financial Adviser to the AOs-C-in-C of all the IAF Commands.

There are two offices of CDA Air Force, one at PCDA (AF) Deharadun and another at CDA (AF) New Delhi

Objectives :

To ensure that pay and provident Fund Accounts in respect of officers, Airmen and Civilians are correctly maintained by the AFCAO.

24 PCDA (BORDER ROADS) To provide centralised and uniform audit, payment, accounting & financial advice cover to Border Roads Organisation, an independent CDA (Border Roads) was set up on 1-4-91. Prior to this, the functions of CDA(Border Roads) were being discharged by Regional Controllers under whose jurisdiction GREF Units were located. The PCDA (Border Roads) is an establishment of the Defence Accounts Department under the Ministry of Defence (Finance). The Office of CDA(Border Roads) has been upgraded to Principal Controller of Defence Accounts (Border Roads) vide GOI MOD(FIN) letter No.F.I(1)/1c/2005 Dated 26th May, 2009. The office of PCDA(BR) comes under administrative control of Controller General of Defence Accounts, New Delhi.

The PCDA (Border Roads) discharges the audit, payment, accounting & financial advice functions through its zonal offices viz. CDA(BR) Guwahati, Jt. CDA(BR) Chandigarh and Accounts Offices(Projects) & Task Forces located in the entire length and breadth of the country including abroad i.e Bhutan. In respect of HQDGBR, audit, payment, accounting & financial advice functions are discharged by Main Office, PCDA (Border Roads) New Delhi. The Pay and Allowances of GREF Employees are dealt with by PAO(GREF) Pune.

The expenditure of PCDA (Border Roads) is debitable to Ministry of Road Transport & highways (MOR&TH) Grant No 80, Major Head-3451. However, the budget allotments in respect of loans and advances are made by the CGDA.

25 3. CODES & MANUALS AND RULES & REGULATIONS IN DAD

The list of the rules, regulations, instructions, manuals held by the Defence Accounts Department under its control or used by its employees for discharging its functions is given below:

S/No. Name of Compilation Popular name Category

1 Office Manual Part-I O M Part-I Manual

2 Office Manual Part-II VOL. I O M Part-II VOL. I Manual

3 Office Manual Part-II VOL. II O M Part-II VOL. II Manual

Office Manual Part-III (CDA 4 O M Part-III (CDA AF) Manual AF)

Office Manual Part-IV VOL.I 5 O M Part-IV VOL.I Manual (PCDA (Pensions))

Office Manual Part- IV VOL. 6 O M Part- IV VOL. II Manual II (PCDA (Pensions))

Office Manual Part -IV VOL. 7 O M Part -IV VOL. III Manual III (PCDA (Pensions))

Office Manual Part-IV VOL. 8 O M Part-IV VOL. IV Manual IV (PCDA (Pensions))

Office Manual Part -IV VOL. 9 O M Part -IV VOL. V Manual V (PCDA (Pensions))

Office Manual Part V (CDA 10 O M Part V Manual (Funds))

Office Manual Part-VI VOL.I 11 O M Part-VI VOL.I Manual (PCA (Factories))

Office Manual Part -VI VOL.II 12 O M Part -VI VOL.II Manual (PCA (Factories))

26 S/No. Name of Compilation Popular name Category

Office Manual Part VI VOL. 13 O M Part VI VOL. III Manual III (PCA (Factories))

Office Manual Part -VII 14 O M Part -VII NAVY Manual NAVY

Office Manual Part -VIII 15 (Regional CsDA "Engineering O M Part -VIII Manual Section")

Office Manual Part-IX (PCDA 16 O M Part-IX Manual (O))

Office Manual Part-X Vol. I 17 O M Part-X Vol. I Manual (PBORs)

Office Manual Part-X Vol .II 18 O M Part-X Vol .II Manual (PBORs)

Office Manual Part - Vol .III 19 O M Part - Vol .III Manual (PBORs)

20 Office Manual Part-XI O M Part-XI Manual

21 Office Manual Part-XII (Hq) O M Part-XII Manual

22 Office Manual Part-XIII Vol .I O M Part-XIII Vol .I Manual

Office Manual Part- XIII Vol. 23 O M Part- XII Vol. Ii Manual II

24 Defence Account Code Defence Account Code Rules

25 Defence Audit Code Vol .I Defence Audit Code Vol .I Rules

26 Defence Audit Code Vol II Defence Audit Code Vol II Rules

27 Pay And Allowances (PBORs) Pay And Allowances Regulation

27 S/No. Name of Compilation Popular name Category

(PBORs)

Pay And Allowances 28 Pay And Allowances (Officers) Regulation (Officers)

Pay And Allowances 29 Pay And Allowances (Navy) Regulation (Navy)

30 Pay And Allowances (AF) Pay And Allowances (AF) Regulation

31 Leave Rules Army Leave Rules Army Rules

32 Leave Rules Navy Leave Rules Navy Rules

33 Leave Rules Air Force Leave Rules A F Rules

34 Travel Regulation Travel Regulation Regulation

Financial Regulations Part I 35 F R Part I Vol .I Regulation Vol .I

Financial Regulations Part I 36 F R Part I Vol II Regulation Vol II

37 Financial Regulations Part II F R Part II Regulation

Military Engineering Services 38 U A Manual Manual Accountant Manual

Military Engineering Services 39 MES LAM Manual Local Audit Manual

40 Coast Guard Manual Coast Guard Manual Manual

Army Local Audit Manual Part 41 ALAM Part I Vol I Manual I Vol I

42 Army Local Audit Manual Part ALAM Part I Vol II Manual

28 S/No. Name of Compilation Popular name Category

I Vol II

Army Local Audit Manual Part 43 ALAM Part I Vol III Manual I Vol III

Army Local Audit Manual Part 44 ALAM Part II Manual II

45 Air Force Local Audit Manual AFLAM Manual

Naval Local Audit Office 46 NLAOs Manual Manual Manual

Audit Manual (Canteen Stores 47 Audit Manual (CSD) Manual Department)

Controller General of Defence 48 CGDA Procedure Manual Manual Accounts Procedure Manual

Pension Payment 49 Pension Payment Instructions Instructions Instructions

50 Unit Allowance For Army Unit Allowance For Army Instructions

Naval Dock Yard Cost Naval Dock Yard Cost 51 Instructions Accounting Instruction Accounting Instruction

2. In Para 61 of Office Manual Part II, Volume I, a detailed statement showing the documents of various cotegories held by or under control of our Department, and period of its retention is stipulated.

29 4. राजभाषा

राजभाषा संबंधी सांविधानिक और काििू ी उपबंधⴂ का अिपु ालि सनु िश्चित करिे और संघ के सरकारी काम-काज मᴂ ह ंदी के प्रयोग को बढािा देिे के ललए ग ृ मंत्रालय के एक स्ितंत्र विभाग के 셂प मᴂ जूि, 1975 मᴂ राजभाषा विभाग की स्थापिा की गई थी । उसी समय से य विभाग संघ के सरकारी काम-काज मᴂ ह ंदी का प्रगामी प्रयोग बढािे के

ललए प्रयासरत ै । भारत सरकार (कायय आबंटि) नियम, 1961 के अिसु ार, राजभाषा विभाग को नि륍ि कायय स㄂पे गए ℂ -

(1) संविधाि मᴂ राजभाषा से संबंधधत उपबंधⴂ तथा राजभाषा अधधनियम, 1963 (1963 का 19) के उपबंधⴂ का कायायन्ियि, उि उपबंधⴂ को छोड़कर श्जिका कायायन्ियि ककसी अन्य विभाग को स㄂पा गया ै ।

(2) ककसी रा煍य के उ楍ि न्यायालय की काययिा ी मᴂ अंग्रेजी भाषा से

लभन्ि ककसी अन्य भाषा का सीलमत प्रयोग प्राधधकृ त करिे के ललए राष्ट्रपनत का पिू य अिमु ोदि ।

(3) कᴂ द्र सरकार के कमयिाररयⴂ के ललए ह ंदी लिक्षण योजिा और पत्र- पत्रत्रकाओं और उससे संबंधधत अन्य साह 配य के प्रकािि सह त संघ की राजभाषा के 셂प मᴂ ह ंदी के प्रगामी प्रयोग से संबंधधत सभी मामलⴂ के ललए कᴂ द्रीय उत्तरदानय配ि ।

(4) संघ की राजभाषा के 셂प मᴂ ह ंदी के प्रगामी प्रयोग से संबंधधत सभी मामलⴂ मᴂ समन्िय, श्जिमᴂ प्रिासनिक ि녍दािली, पाठय़ वििरण, पाठय़

पस्ु तकᴂ , प्रलिक्षण पाठय़क्रम और उिके ललए अपेक्षक्षत उपस्कर (मािकीकृ त ललवप सह त) िालमल ℂ ।

(5) कᴂ द्रीय सधििालय राजभाषा सेिा का गठि और संिगय प्रबंधि ।

30 (6) कᴂ द्रीय ह ंदी सलमनत से संबंधधत मामले ।

(7) विलभन्ि मंत्रालयⴂ/विभागⴂ 饍िारा स्थावपत ह ंदी सला कार सलमनतयⴂ से संबंधधत कायय का समन्िय ।

(8) कᴂ द्रीय अििु ाद 녍यरू ो से संबंधधत मामले ।

(9) ह ंदी लिक्षण योजिा सह त कᴂ द्रीय ह ंदी प्रलिक्षण संस्थाि से संबंधधत मामले ।

(10) क्षेत्रीय कायायन्ियि कायायलयⴂ से संबंधधत मामले ।

(11) संसदीय राजभाषा सलमनत से संबंधधत मामले ।

संघ की राजभाषा िीनत

संघ की राजभाषा ह ंदी और ललवप देििागरी ै । संघ के िासकीय प्रयोजिⴂ के ललए प्रयोग ोिे िाले अंकⴂ का 셂प भारतीय अंकⴂ का अंतराष्ट्रीय 셂प ै {संविधाि का

अि楍ु छेद 343 (1)} । परन्त ु ह ंदी के अनतररक्त अंग्रेजी भाषा का प्रयोग भी सरकारी कामकाज मᴂ ककया जा सकता ै (राजभाषा अधधनियम की धारा 3) ।

संसद का कायय ह ंदी मᴂ या अंग्रेजी मᴂ ककया जा सकता ै । परन्तु रा煍यसभा के सभापनत म ोदय या लोकसभा के अध्यक्ष म ोदय वििेष पररश्स्थनत मᴂ सदि के ककसी

सदस्य को अपिी मातभृ ाषा मᴂ सदि को संबोधधत करिे की अिमु नत दे सकते ℂ । {संविधाि का अि楍ु छेद 120}

ककि प्रयोजिⴂ के ललए केिल ह ंदी का प्रयोग ककया जािा ै, ककि के ललए ह ंदी और अंग्रेजी दोिⴂ भाषाओं का प्रयोग आिचयक ै और ककि कायⴂ के ललए अंग्रेजी भाषा का प्रयोग ककया जािा ै, य राजभाषा अधधनियम 1963, राजभाषा नियम 1976 और

31 उिके अंतगयत समय समय पर राजभाषा विभाग, ग ृ मंत्रालय की ओर से जारी ककए गए निदेिⴂ 饍िारा निधायररत ककया गया ै ।

भारत के संविधाि मᴂ राजभाषा से संबंधधत भाग-17

अध्याय 1--संघ की भाषा

अि楍ु छेद 120. संस饍 मᴂ प्रयोग की जािे िाली भाषा - (1) भाग 17 मᴂ ककसी बात के ोते

ुए भी, ककं तु अि楍ु छेद 348 के उपबंधⴂ के अधीि र ते ुए, संस饍 मᴂ कायय ह ंदी मᴂ या अंग्रेजी मᴂ ककया जाएगा

परंत,ु यथाश्स्थनत, रा煍य सभा का सभापनत या लोक सभा का अध्यक्ष अथिा उस 셂प मᴂ कायय करिे िाला व्यश्क्त ककसी सदस्य को, जो ह ंदी मᴂ या अंग्रेजी मᴂ अपिी पयायप्त

अलभव्यश्क्त ि ीं कर सकता ै, अपिी मात-ृ भाषा मᴂ सदि को संबोधधत करिे की अिज्ञु ा दे सकेगा ।

(2) जब तक संस饍 विधध 饍िारा अन्यथा उपबंध ि करे तब तक इस संविधाि के प्रारंभ

से पंद्र िषय की अिधध की समाश्प्त के पचिात ् य अि楍ु छेद ऐसे प्रभािी ोगा मािो “या अंग्रेजी मᴂ” ि녍दⴂ का उसमᴂ से लोप कर हदया गया ो ।

अि楍ु छेद 210: विधाि-मंडल मᴂ प्रयोग की जािे िाली भाषा - (1) भाग 17 मᴂ ककसी बात

के ोते ुए भी, ककं तु अि楍ु छेद 348 के उपबंधⴂ के अधीि र ते ुए, रा煍य के विधाि- मंडल मᴂ कायय रा煍य की राजभाषा या राजभाषाओं मᴂ या ह ंदी मᴂ या अंग्रेजी मᴂ ककया जाएगा

परंत,ु यथाश्स्थनत, विधाि सभा का अध्यक्ष या विधाि पररष饍 का सभापनत अथिा उस 셂प मᴂ कायय करिे िाला व्यश्क्त ककसी सदस्य को, जो पिू ोक्त भाषाओं मᴂ से ककसी भाषा मᴂ अपिी पयायप्त अलभव्यश्क्त ि ीं कर सकता ै, अपिी मातभृ ाषा मᴂ सदि को संबोधधत करिे की अिज्ञु ा दे सकेगा ।

32 (2) जब तक रा煍य का विधाि-मंडल विधध 饍िारा अन्यथा उपबंध ि करे तब तक इस

संविधाि के प्रारंभ से पंद्र िषय की अिधध की समाश्प्त के पचिात ् य अि楍ु छेद ऐसे प्रभािी ोगा मािो “ या अंग्रेजी मᴂ ” ि녍दⴂ का उसमᴂ से लोप कर हदया गया ो :

परंत ु ह मािल प्रदेि, मणणपरु , मेघालय और त्रत्रपरु ा रा煍यⴂ के विधाि-मंडलⴂ के संबंध मᴂ, य खंड इस प्रकार प्रभािी ोगा मािो इसमᴂ आिे िाले “पंद्र िषय” ि녍दⴂ के स्थाि पर “प楍िीस िषय” ि녍द रख हदए गए ⴂ :

परंत ु य और कक अ셂णािल प्रदेि, गोिा और लमजोरम रा煍यⴂ के विधाि-मंडलⴂ के संबंध मᴂ य खंड इस प्रकार प्रभािी ोगा मािो इसमᴂ आिे िाले “ पंद्र िषय ” ि녍दⴂ के स्थाि पर “ िालीस िषय ” ि녍द रख हदए गए ⴂ ।

अि楍ु छेद 343. संघ की राजभाषा--

(1) संघ की राजभाषा ह ंदी और ललवप देििागरी ोगी, संघ के िासकीय प्रयोजिⴂ के ललए प्रयोग ोिे िाले अंकⴂ का 셂प भारतीय अंकⴂ का अंतरायष्ट्रीय 셂प ोगा।

(2) खंड (1) मᴂ ककसी बात के ोते ुए भी, इस संविधाि के प्रारंभ से पंद्र िषय की अिधध तक संघ के उि सभी िासकीय प्रयोजिⴂ के ललए अंग्रेजी भाषा का प्रयोग ककया जाता र ेगा श्जिके ललए उसका ऐसे प्रारंभ से ठीक प ले प्रयोग ककया जा र ा था :

परन्त ु राष्ट्रपनत उक्त अिधध के दौराि, आदेि 饍िारा, संघ के िासकीय प्रयोजिⴂ मᴂ से ककसी के ललए अंग्रेजी भाषा के अनतररक्त ह ंदी भाषा का और भारतीय अंकⴂ के

अंतरायष्ट्रीय 셂प के अनतररक्त देििागरी 셂प का प्रयोग प्राधधकृ त कर सकेगा।

(3) इस अि楍ु छेद मᴂ ककसी बात के ोते ुए भी, संस饍 उक्त पन्द्र िषय की अिधध के पचिात ,् विधध 饍िारा

(क) अंग्रेजी भाषा का, या

33 (ख) अंकⴂ के देििागरी 셂प का,

ऐसे प्रयोजिⴂ के ललए प्रयोग उपबंधधत कर सकेगी जो ऐसी विधध मᴂ विनिहदयष्ट्ट ककए जाएं।

अि楍ु छेद 344. राजभाषा के संबंध मᴂ आयोग और संसद की सलमनत--

(1) राष्ट्रपनत, इस संविधाि के प्रारंभ से पांि िषय की समाश्प्त पर और त配पचिात ् ऐसे प्रारंभ से दस िषय की समाश्प्त पर, आदेि 饍िारा, एक आयोग गहठत करेगा जो एक

अध्यक्ष और आठिीं अिसु िू ी मᴂ विनिहदयष्ट्ट विलभन्ि भाषाओं का प्रनतनिधध配ि करिे िाले ऐसे अन्य सदस्यⴂ से लमलकर बिेगा श्जिको राष्ट्रपनत नियक्ु त करे और आदेि मᴂ आयोग 饍िारा अिसु रण की जािे िाली प्रकक्रया पररनिश्चित की जाएगी।

(2) आयोग का य कतयव्य ोगा कक ि राष्ट्रपनत को--

(क) संघ के िासकीय प्रयोजिⴂ के ललए ह ंदी भाषा के अधधकाधधक प्रयोग,

(ख) संघ के सभी या ककन् ीं िासकीय प्रयोजिⴂ के ललए अंग्रेजी भाषा के प्रयोग पर निबंधिⴂ,

(ग) अि楍ु छेद 348 मᴂ उश्ललणखत सभी या ककन् ीं प्रयोजिⴂ के ललए प्रयोग की जािे िाली भाषा,

(घ) संघ के ककसी एक या अधधक विनिहदयष्ट्ट प्रयोजिⴂ के ललए प्रयोग ककए जािे िाले अंकⴂ के 셂प,

(ड़) संघ की राजभाषा तथा संघ और ककसी रा煍य के बीि या एक रा煍य और दसू रे रा煍य के बीि पत्राहद की भाषा और उिके प्रयोग के संबंध मᴂ राष्ट्रपनत 饍िारा आयोग को निदेलित ककए गए ककसी अन्य विषय, के बारे मᴂ लसफाररि करे।

34 (3) खंड (2) के अधीि अपिी लसफाररिᴂ करिे मᴂ, आयोग भारत की औ饍योधगक,

सांस्कृ नतक और िैज्ञानिक उन्िनत का और लोक सेिाओं के संबंध मᴂ अह ंदी भाषी क्षेत्रⴂ के व्यश्क्तयⴂ के न्यायसंगत दािⴂ और ह तⴂ का स륍यक ध्याि रखेगा।

(4) एक सलमनत गहठत की जाएगी जो तीस सदस्यⴂ से लमलकर बिेगी श्जिमᴂ से बीस लोक सभा के सदस्य ⴂगे और दस रा煍य सभा के सदस्य ⴂगे जो क्रमिः लोक सभा के

सदस्यⴂ और रा煍य सभा के सदस्यⴂ 饍िारा आिपु ानतक प्रनतनिधध配ि प饍धनत के अिसु ार एकल संक्रमणीय मत 饍िारा नििायधित ⴂगे।

(5) सलमनत का य कतयव्य ोगा कक ि खंड (1)के अधीि गहठत आयोग की लसफाररिⴂ की परीक्षा करे और राष्ट्रपनत को उि पर अपिी राय के बारे मᴂ प्रनतिेदि दे।

(6) अि楍ु छेद 343 मᴂ ककसी बात के ोते ुए भी, राष्ट्रपनत खंड (5) मᴂ निहदयष्ट्ट प्रनतिेदि पर वििार करिे के पचिात ् उस संपणू य प्रनतिेदि के या उसके ककसी भाग के अिसु ार निदेि दे सकेगा।

अध्याय 2- प्रादेलिक भाषाएं

अि楍ु छेद 345. रा煍य की राजभाषा या राजभाषाएं--

अि楍ु छेद 346 और अि楍ु छेद 347 के उपबंधⴂ के अधीि र ते ुए, ककसी रा煍य का विधाि-मंडल, विधध 饍िारा, उस रा煍य मᴂ प्रयोग ोिे िाली भाषाओं मᴂ से ककसी एक या अधधक भाषाओं को या ह ंदी को उस रा煍य के सभी या ककन् ीं िासकीय प्रयोजिⴂ के ललए प्रयोग की जािे िाली भाषा या भाषाओं के 셂प मᴂ अंगीकार कर सकेगाः

परंत ु जब तक रा煍य का विधाि-मंडल, विधध 饍िारा, अन्यथा उपबंध ि करे तब तक रा煍य के भीतर उि िासकीय प्रयोजिⴂ के ललए अंग्रेजी भाषा का प्रयोग ककया जाता र ेगा श्जिके ललए उसका इस संविधाि के प्रारंभ से ठीक प ले प्रयोग ककया जा र ा था।

35 अि楍ु छेद 346. एक रा煍य और दसू रे रा煍य के बीि या ककसी रा煍य और संघ के बीि पत्राहद की राजभाषा--

संघ मᴂ िासकीय प्रयोजिⴂ के ललए प्रयोग ककए जािे के ललए त配समय प्राधधकृ त भाषा, एक रा煍य और दसू रे रा煍य के बीि तथा ककसी रा煍य और संघ के बीि पत्राहद की राजभाषा ोगी :

परंत ु यहद दो या अधधक रा煍य य करार करते ℂ कक उि रा煍यⴂ के बीि पत्राहद की राजभाषा ह ंदी भाषा ोगी तो ऐसे पत्राहद के ललए उस भाषा का प्रयोग ककया जा सकेगा।

अि楍ु छेद 347. ककसी रा煍य की जिसंख्या के ककसी अिभु ाग 饍िारा बोली जािे िाली भाषा के संबंध मᴂ वििेष उपबंध--

यहद इस निलमत्त मांग ककए जािे पर राष्ट्रपनत का य समाधाि ो जाता ै कक ककसी रा煍य की जिसंख्या का पयायप्त भाग य िा ता ै कक उसके 饍िारा बोली जािे िाली भाषा को रा煍य 饍िारा मान्यता दी जाए तो ि निदेि दे सकेगा कक ऐसी भाषा को भी उस रा煍य मᴂ सियत्र या उसके ककसी भाग मᴂ ऐसे प्रयोजि के ललए, जो ि विनिहदयष्ट्ट करे, िासकीय मान्यता दी जाए।

अध्याय 3 - उ楍ितम न्यायालय, उ楍ि न्यायालयⴂ आहद की भाषा

अि楍ु छेद 348. उ楍ितम न्यायालय और उ楍ि न्यायालयⴂ मᴂ और अधधनियमⴂ, विधेयकⴂ आहद के ललए प्रयोग की जािे िाली भाषा--

(1) इस भाग के पिू गय ामी उपबंधⴂ मᴂ ककसी बात के ोते ुए भी, जब तक संस饍 विधध 饍िारा अन्यथा उपबंध ि करे तब तक--

36 (क) उ楍ितम न्यायालय और प्र配येक उ楍ि न्यायालय मᴂ सभी काययिाह यां अंग्रेजी भाषा मᴂ ⴂगी,

(ख) (i) संस饍 के प्र配येक सदि या ककसी रा煍य के विधाि-मंडल के सदि या प्र配येक

सदि मᴂ परु ःस्थावपत ककए जािे िाले सभी विधेयकⴂ या प्रस्तावित ककए जािे िाले उिके संिोधिⴂ के ,

(ii) संसद या ककसी रा煍य के विधाि-मंडल 饍िारा पाररत सभी अधधनियमⴂ के और राष्ट्रपनत या ककसी रा煍य के रा煍यपाल 饍िारा प्रख्यावपत सभी अध्यादेिⴂ के ,और (iii) इस संविधाि के अधीि अथिा संसद या ककसी रा煍य के विधाि-मंडल 饍िारा बिाई गई ककसी विधध के अधीि निकाले गए या बिाए गए सभी आदेिⴂ, नियमⴂ, विनियमⴂ

और उपविधधयⴂ के , प्राधधकृ त पाठ अंग्रेजी भाषा मᴂ ⴂगे।

(2) खंड(1) के उपखंड (क) मᴂ ककसी बात के ोते ुए भी, ककसी रा煍य का रा煍यपाल राष्ट्रपनत की पिू य स मनत से उस उ楍ि न्यायालय की काययिाह यⴂ मᴂ, श्जसका मख्ु य स्थाि उस रा煍य मᴂ ै, ह न्दी भाषा का या उस रा煍य के िासकीय प्रयोजिⴂ के ललए

प्रयोग ोिे िाली ककसी अन्य भाषा का प्रयोग प्राधधकृ त कर सकेगाः

परंत ु इस खंड की कोई बात ऐसे उ楍ि न्यायालय 饍िारा हदए गए ककसी निणयय, डडक्री या आदेि को लागू ि ीं ोगी।

(3) खंड (1) के उपखंड (ख) मᴂ ककसी बात के ोते ुए भी, ज ां ककसी रा煍य के विधाि- मंडल िे,उस विधाि-मंडल मᴂ परु ःस्थावपत विधेयकⴂ या उसके 饍िारा पाररत अधधनियमⴂ मᴂ अथिा उस रा煍य के रा煍यपाल 饍िारा प्रख्यावपत अध्यादेिⴂ मᴂ अथिा उस उपखंड के पैरा (iv ) मᴂ निहदयष्ट्ट ककसी आदेि, नियम, विनियम या उपविधध मᴂ प्रयोग के ललए अंग्रेजी भाषा से लभन्ि कोई भाषा विह त की ै ि ां उस रा煍य के राजपत्र मᴂ उस रा煍य के

रा煍यपाल के प्राधधकार से प्रकालित अंग्रेजी भाषा मᴂ उसका अििु ाद इस अि楍ु छेद के अधीि उसका अंग्रेजी भाषा मᴂ प्राधधकृ त पाठ समझा जाएगा।

37 अि楍ु छेद 349. भाषा से संबंधधत कु छ विधधयां अधधनियलमत करिे के ललए वििेष प्रकक्रया--

इस संविधाि के प्रारंभ से पंद्र िषय की अिधध के दौराि, अि楍ु छेद 348 के खंड (1) मᴂ उश्ललणखत ककसी प्रयोजि के ललए प्रयोग की जािे िाली भाषा के ललए उपबंध करिे

िाला कोई विधेयक या संिोधि संसद के ककसी सदि मᴂ राष्ट्रपनत की पिू य मंजूरी के त्रबिा परु ःस्थावपत या प्रस्तावित ि ीं ककया जाएगा और राष्ट्रपनत ककसी ऐसे विधेयक को परु ःस्थावपत या ककसी ऐसे संिोधि को प्रस्तावित ककए जािे की मंजूरी अि楍ु छेद 344 के खंड (1) के अधीि गहठत आयोग की लसफाररिⴂ पर और उस अि楍ु छेद के खंड (4) के अधीि गहठत सलमनत के प्रनतिेदि पर वििार करिे के पचिात ् ी देगा, अन्यथा ि ीं।

अि楍ु छेद 351. ह ंदी भाषा के विकास के ललए निदेि--

संघ का य कतयव्य ोगा कक ि ह ंदी भाषा का प्रसार बढाए, उसका विकास करे श्जससे

ि भारत की सामालसक संस्कृ नत के सभी त配िⴂ की अलभव्यश्क्त का माध्यम बि सके और उसकी प्रकृ नत मᴂ स्तक्षेप ककए त्रबिा ह दं स्ु थािी मᴂ और आठिीं अिसु िू ी मᴂ विनिहदयष्ट्ट भारत की अन्य भाषाओं मᴂ प्रयक्ु त 셂प, िैली और पदⴂ को आ配मसात करते

ुए और ज ां आिचयक या िांछिीय ो ि ां उसके ि녍द-भंडार के ललए मख्ु यतः संस्कृ त से और गौणतः अन्य भाषाओं से ि녍द ग्र ण करते ुए उसकी सम饍ृ धध सनु िश्चित करे।

38 5. HIERARCHY AND PAY STRUCTURE OF DAD, FIXATION OF PAY AND MACPS

Hierarchy and pay structure of DAD

Designation Pay Band Grade Pay

Rs. 80000/- CGDA Nil (Fixed) (Apex

Rs.Scale) 7550 0- Addl. CGDA Nil 80000/- (HAG+

Rs.Scale) 6700 0- PCDA Nil 79000/- (HAG Scale)Rs. 37400 -67000/-(PB - Sr. Administrative Grade Rs. 10000/- 4)

Jr. Administrative Grade Rs. 37400-67000/-(PB - (Non Functional 4) Rs. 8700/- Selection Grade)

Rs. 15600-39100/- Jr. Administrative Grade (PB - Rs. 7600/- 3)

Rs. 15600-39100/-(PB - Sr. Time Scale Rs. 6600/- 3) Rs. 15600-39100/-(PB - Jr. Time Scale Rs. 5400/- 3)

Rs. 15600-39100/-(PB - PPS Rs. 6600/- 3)

Rs. 15600-39100/-(PB - Hindi Officer Rs. 5400/- 3)

Rs. 15600-39100/-(PB - Sr. Accounts Officer Rs. 5400/- 3) Accounts Officer Rs. 9300-34800/- (PB-2) Rs. 5400/-

Initially Rs. 4800/- & Sr. Private Secretary Rs. 9300-34800/- (PB-2) Rs. 5400/- after 4 years of service in the grade Asstt. Accounts Officer Rs. 9300-34800/- (PB-2) Rs. 4800/- Supervisor(A/Cs) Rs. 9300-34800/- (PB-2) Rs. 4800/- Private Secretary Rs. 9300-34800/- (PB-2) Rs. 4600/- Sr. Hindi Translator Rs. 9300-34800/- (PB-2) Rs. 4600/- Steno Grade - I Rs. 9300-34800/- (PB-2) Rs. 4200/- Sr. Auditor Rs. 9300-34800/- (PB-2) Rs. 4200/-

39 DEO - 'C' Rs. 9300-34800/- (PB-2) Rs. 4200/- Librarian Rs. 9300-34800/- (PB-2) Rs. 4200/- Jr. Hindi Translator Rs. 9300-34800/- (PB-2) Rs. 4200/- Staff Car Driver (Spl) Rs. 9300-34800/- (PB-2) Rs. 4200/- DEO - 'B' Rs. 5200-20200/- (PB-1) Rs. 2800/- Auditor Rs. 5200-20200/- (PB-1) Rs. 2800/- Staff Car Driver (Gde-I) Rs. 5200-20200/- (PB-1) Rs. 2800/- Rs. 2800/- *as per DEOSteno -Grade 'A' - II Rs. 5200-20200/- (PB-1) Hon'bleRs. 2400/ CAT- order. Staff Car Driver (Gde-II) Rs. 5200-20200/- (PB-1) Rs. 2400/- Clerks Rs. 5200-20200/- (PB-1) Rs. 1900/- Hindi Typist Rs. 5200-20200/- (PB-1) Rs. 1900/- Staff Car Driver (Gde-III) Rs. 5200-20200/- (PB-1) Rs. 1900/- Sr. Ges. Operator Rs. 5200-20200/- (PB-1) Rs. 1900/- MTS Rs. 5200-20200/- (PB-1) Rs. 1800/-

FIXATION OF PAY UNDER FUNDAMENTAL RULES

1. On direct appointment to a post.

On initial appointment after 1.1.2006, the pay will be fixed at the minimum of the pay in the Pay Band and Grade Pay of the post to which the employee has been appointed.

1. On promotion (i) One increment equal to 3% of total of Pay in the running Pay Band and corresponding Grade Pay rounded off to next multiple of 10. While rounding off, paise should be ignored, but any amount of a rupee or more should be rounded off to the next multiple of 10. This will be added to the existing pay in the Pay Band. The Grade Pay corresponding to the promotion post thereafter be granted in addition to this pay in the Pay Band. In cases where promotion involves change in the Pay Band also, the same methodology will be followed. However, if the pay in the Pay Band after adding the increment is less than the minimum of the higher Pay Band to which promotion is taking place, pay in the Pay Band will be stepped up to such minimum.

(ii) The Pay shall not be exceed Rs. 80,000/-, in case of NPA, it will not be exceed Rs. 85,000/-.

40 (iii) In the case of Govt Servant opts to get his pay fixed from his date of increment, then, on the date of promotion, pay in the Pay Band shall continue unchanged, but the grade pay of the higher post will be granted. Further, re-fixation will be done on the date of next increment i.e. 1st JULY. On that day, he will be granted two increments; one annual increment and the second on account of promotion.

(iv) In the case of Govt. servant opts to get his pay fixed in the higher grade with effect from the date of promotion, he shall get his 1st increment in the higher grade on the next 1st JULY. e.g. If any Govt Servant get promotion between 2nd July 2009 & 1st January 2010, he will get increment on the date of promotion and he will also get annual increment on 1st JULY 2010. If any Govt servant get promotion between 2nd January 2010 & 30th June 2010 and opted to get increment on the date of promotion, then he will get the annual increment on 1st JULY 2011.

3. On granting financial up gradation under MACP Scheme.

Benefits of pay fixation available at the time of normal promotion shall be allowed at the time of financial upgradations under the scheme. Thus, an increment of 3% of Pay and Grade Pay shall be available as financial upgradations under the scheme.

4. Option to choose the date for fixation of pay.

In both the cases 2 and 3 above, the employee can give an option, within one month from the date of appointment, for fixation of his pay in the new post either straightaway from the date of his appointment to the new post or from the date of his next increment in the old post.

For this purpose, an option clause should be incorporated in the promotion order itself to enable the employee to exercise the option within a month- FR 22 GIO (17).

Although, the option once exercised is final, a revise option is available pursuant to any unforeseen development or changes of rules. OM dated 25.2.2003.

5. Fixation of pay of State Government employees on their appointment in the Central Government. (1) Where the state Government have revised the pay scale of their employees on the pattern of V Central Pay Commission at the CPI

41 1510 with effect from 1.1.1996, there pay would be fixed directly under FR 22 (I) (a) (1) or FR 22 (I) (a) (2), as the case may be.

(2) Where the State Government have revised the pay scale of their employees after 1.1.1996 beyond CPI 1510, basic pay of the employees is to be determined first in the Central Scale by reducing the element of DA, ADA, I.R., etc., granted by the State government after 1.1.1996 (beyond CPI 1510) and thereafter the pay would be fixed under FR 22 (I) (a) (1) or FR (I) (a) (2), as the case may be.

(3) Where the State Government have either not revised or revised the pay scales of their employees on or after 1.1.1996 below CPI 1510, basic pay of the employees is to be determined first in the Central Scale, by adding the element of D.A., ADA up to CPI 1510 granted by the State Government and thereafter pay would be fixed under FR 22 (I) (a) (1) or FR 22 (I) (a) (2), as the case may be.

These orders apply to the State Government employees, including Emergency Divisional Accountants/Divisional accountants appointed under the Central Government on or after 1.1.1996 FR 22, GIO (13).

6. Fixation of pay on appointment to an ex cadre post.

A Central Government servant appointed on deputation to an ex cadre post may elect to draw either the pay in the scale of pay of the ex cadre post or his basic pay in the parent cadre from time to time plus Deputation (Duty) Allowance at the prescribed rate thereon plus personal pay, if any. If he elects to draw pay of the ex cadre post which is higher than his cadre post, his pay in the ex cadre post will be fixed under FR 22 (I) (a) (1). If the ex cadre post is not higher, pay in the ex cadre post will be fixed under FR 22 (I) (a) (2). If he elects to draw his basic pay in the parent cadre plus deputation (duty) allowance, the question of fixation of his pay in the ex cadre post does not arise – (Para 5.1, Appendix-5).

7. On transfer/appointment from one ex cadre post to another ex cadre post.

If an employee on appointment or transfer to an ex cadre post had opted to draw pay in the scale of the ex cadre post, his pay in the second or subsequent ex cadre posts, will be fixed under FR 22 (I) (a) (1) or (a) (2), as the case may

42 be, with reference to his pay in the parent cadre only and not with reference to his pay in the ex cadre post. If the second or subsequent ex cadre post is in a higher scale than that of the previous ex cadre post and the pay fixed in the second or subsequent ex cadre post happens to be less than the pay drawn in the previous ex cadre post, the difference will be allowed as personal pay to be absorbed in future increases in pay. This is subject to the condition that on each occasion the employee should have opted to draw pay in the scale of pay attached to the ex cadre post– (Para 5.2 & 5.3, Appendix-5).

8. Promotion to a higher post in the parent department on reversion from ex cadre post.

The pay in the higher post will be fixed under FR 22 (1) (a) (1) with reference to the presumptive pay he would have drawn in the cadre post but for deputation to the ex cadre post and not with reference to the pay drawn by him in the ex cadre post – FR 22(IV)

9. On re-appointment to the same post held earlier/to the post with same or identical time scale of the post held earlier. The pay will be fixed under FR 22 (I) (a) (1) or FR 22 (I) (a) (2), as the case may be, subject to the condition that the pay so fixed shall not be less than the pay, he drew on the last occasion, and he shall count the period he drew that pay on a regular basis on such last and previous occasions for increment in the stage of the time scale equivalent to that pay - Prov. To FR 22 (I).

10. On re-appointment after a break in service. His initial pay in the re-appointed post will be fixed at the minimum of the time-scale prescribed for that post. However, if the break in service is not due to resignation or removal or dismissal, and the post in which he is re-appointed is the same post which he held earlier or a post with the same or identical time- scale of the post held earlier, his initial pay in the post shall not be less than the pay he drew on the last occasion, and he shall count the period during which he drew that pay on a regular basis on such last and any previous occasions for increment in the stage of the time-scale equivalent to that pay. (Fixation of pay of re-employed pensioners is regulated under CCS (Fixation of pay of re- employed Pensioners) Orders, 1986 and not by FR 22.)

11. On reduction to a lower stage in a time-scale.

43 The authority ordering reduction of pay of a Government servant to a lower stage in his time-scale as a measure of penalty shall state.

(a) The stage to which the pay has been reduced. (b) The period for which the reduction will be effective, (c) Whether the period of reduction will have the effect of postponing his future increment or not and (d) Whether the employee will earn increments during the period of reduction. The period of reduction cannot be indefinite.

If the order of reduction lays down that the period of reduction will not operate to postpone future increments, on restoration the employee will be entitled to the pay he would have drawn but for the order of reduction. If, on the other hand, the order of reduction lays down that the reduction should operate to postpone future increments for a specified period, then the pay will be fixed as indicated above, but after treating the period for which the increment is to be postponed as not counting for increment - FR 29, GIO (2).

12. On reduction to a lower grade or post or lower time-scale.

The reduction to a lower grade or post or lower time-scale as a penalty could be for a specified period or unspecified or indefinite period. If the reduction is to be imposed for specified period, then the order of penalty should clearly state the period in terms of years and months to which it will operate to postpone future increments. The authority ordering reduction should also specify the stage in the time-scale of the lower post at which the pay should be fixed. If this is not specified in the order, the pay in the lower post will be fixed under FR 22 (I) (a) (2). On expiry of the punishment period, his pay in the scale of pay of the post from which he is reduced will automatically be fixed as stated in the case of ‘reduction to a lower stage in a time-scale’.

If the period of reduction is not specified, there will be no automatic restoration to the old post. In such cases, the Government servant when re- appointed to the higher post will have his pay fixed under FR 22 (I) (a) (1)- FR 29, GIO (3).

13. Protection of pay of candidates recruited to Central Services/Posts from Central/State Autonomous Bodies/PSUs.

44 In respect of candidates working in Central Public Sector Undertakings, state Public Sector undertakings, Universities, Semi-Government Institutions or Autonomous Bodies, Nationalized Banks including State Bank of India and Reserve Bank of India, who are appointed as direct recruits on selection through a properly constituted agency including departmental authorities making recruitment directly, their initial pay may be fixed at a stage in the scale of pay attached to the post so that the pay and D.A., as admissible in the Government will protect the pay plus D.A., already being drawn by them in their parent organization. In the event of such a stage not being available in the post to which they have been recruited, their pay may be fixed at a stage just below in the scale of the post to which they have been recruited, so as to ensure a minimum loss to the candidates. The fixed under this formulation will not exceed the maximum of the scale of the post to which they have been recruited. The above benefit is not admissible to those who are recruited through open competitive examination- FR 22, GIOs. (29), (30) & (31).

MODIFIED ASSURED CAREER PROGRESSION SCHEME

Salient Features of MACPS

(1) The scheme envisages grant of three financial upgradations to Group 'A', 'B' and 'C' employees at intervals of 10, 20 and 30 years of continuous regular service, counted from the direct entry grade. Financial upgradation is allowed whenever a person has spent 10 years continuously in the same grade pay.

Pay Fixation

The pay shall be raised by 3% of the total pay in the pay band and the grade pay drawn before such up gradation. For persons granted financial up gradation under MACPS, when promoted on regular basis, no further pay fixation will be allowed. However, if the promotion is to a post with higher grade pay, only difference in Grade Pay will be allowed.

On grant of financial up gradation, an employee has an option to get his pay fixed in the higher post/grade pay either from the date of his up gradation or from the date of his next stincrement viz, 1 July of the year. Promotions earned in the post carrying same grade pay shall be counted for the purpose of MACPS. Grade pay Rs. 5,400 in PB-2 and Rs. 5,400 in PB-3 will be considered separate grade pays for the purpose of the Scheme.

Conditions for Grant of Benefit

45 (1) Promotions earned/upgradations granted under the ACP Scheme in the past to those grades which now carry the same grade pay due to merger of pay scales/upgradations of posts shall be ignored. (2) In the case of all the employees granted financial upgradations under ACPS till 01.01.2006, their revised pay will be fixed with reference to the pay scale granted to them under the ACPS.

If ACP had been granted between 1.1.2006 and 31.8.2008, the financial upgradation under ACP. In the latter case, arrears will accrue only from that date of financial upgradation. (3) Regular Service' for purpose of MACPS, commences from the date of joining a post in direct entry grade on a regular basis either on direct recruitment basis or on absorption/re-employment basis. Service rendered on adhoc/contract basis before regular appointment on pre- appointment training is not taken into reckoning. 'Regular Service' includes all periods spent on deputation/foreign service, study leave and all kinds of leave, duly sanctioned by the Competent Authority.

Past continuous regular service in another Government Department in a post carrying same grade pay prior to regular appointment in a new Department, without a break, is also counted towards qualifying regular service only ( and not for the regular promotions). However, benefits under the MACPS in such cases in not considered till the satisfactory completion of the probation period in the new post.

(4) On grant of financial up gradation, there is no change in the designation, classification or higher status. However, financial and certain other benefits which are linked to the pay drawn by an employee such as House Building Advance, allotment of Government Accommodation, are permitted.

(5) The financial up gradation within PB-1 is subject to fitness. Thereafter for up gradation, the benchmark of 'good' is applicable till the grade pay of Rs. 6,600/-in PB-3. The benchmark is 'Very Good' for financial up gradation to the grade pay of Rs. 7,600 and above. Where the financial up gradation also happens to be in the promotional grade and benchmark for promotion is lower than the benchmark for granting the benefits under MACPS, the benchmark for promotions apply to MACPS also.

(6) Promotions/up gradations under ACP granted in the past to posts in pre- revised pay scales of Rs. 2,550-3,200, Rs. 2,610-3540, Rs. 2610-4000 and Rs.

46 2650-4000 are ignored. However, promotions/up gradations granted to existing Group 'D' employees to grade pay of Rs. 1,900 (pre-revised scale of Rs. 3,050- 4590) are counted.

(7) Past service rendered by an employee in a State Government/Statutory body/Autonomous body/Public Sector Organisation, before appointment is not counted towards Regular Service.

(8) No reservation orders/roster apply to the MACPS.

(9) In the matter of disciplinary/penalty proceedings, grant of benefit under the Scheme is subject to rules governing normal promotion.

(10) Financial up gradation is purely personal to the employee and has no relevance to his seniority position.

(11) Pay drawn in the pay band and the grade pay allowed under the Scheme is taken as the basis for determining the terminal benefits in respect of the retiring employee.

(12) If Group "A" Government employee, who was not covered under the ACP Scheme has now become entitled to, say third financial up gradation directly, having completed 30 years' regular service, then his pay is fixed successively in next three immediate higher grade pays in the hierarchy of revised pay-bands and grade pays allowing the benefit of 3% pay fixation at every stage. Pay of persons becoming eligible for second financial up gradation is also fixed accordingly.

(13) In the case of transfer including unilateral transfer on request, regular service in the new organization/office for the purposes of getting financial up gradations under the MACPS. However, financial up gradation under the MACPS shall be allowed in the immediate next higher grade pay in the hierarchy of revised pay bands as given in CCS (RP) Rules, 2008.

(14) In case an employee is declared surplus in his/her organization and appointed in the same pay-scale or lower scale of pay in the new organization, the regular service rendered by him/her in the previous organization is counted towards the regular service in his/her new organisation for the purpose of giving financial up gradation under the Scheme.

47 (15) DR Assistants/DR Grade 'C' Stenographers who have got Non Functional Grade (NFG) in Grade Pay Rs. 5,400 would be entitled to 3rd financial up gradations in the immediate higher grade pay of Rs. 6,600 on completion of 30 years of continuous Service or on completion of 10 years of stagnation in a single grade pay, whichever is earlier. No further financial up gradation would be admissible to such officials.

(16) Employees on deputation need not revert to the parent department for availing the benefit of financial up gradation under the Scheme. They may exercise a fresh option to draw the pay in the pay band and the grade pay of the post held by them or the pay plus grade pay admissible to them under the Scheme whichever is beneficial.

(17) If an employee has been offered regular promotion but was refused by the employee before becoming entitled to a financial up gradation, no financial up gradation is allowed; as such an employee has not been stagnated due to lack of opportunities. If, however, financial up gradation has been allowed due to stagnation and the employee subsequently refuses the regular promotion, it shall not be a ground to withdraw the financial up gradation. He shall, however, not be eligible to be considered for further financial up gradation till he agrees to be considered for promotion again and the next financial up gradation shall also be deferred to the extent of period of debarment due to the refusal. (18) Cases of persons holding higher posts purely on adhoc basis shall also be considered by the Screening Committee along with others. They may be allowed the benefit of financial up gradation on reversion to the lower post or if it is beneficial vis-à- vis the pay drawn on adhoc basis.

48 6. LEAVE AND ATTENDANCE

GENERAL

Leave cannot be claimed as a right and will not be granted unless arrangements can be made for the work of the applicant during his/her absence.

Every member of the establishment who applies for leave will ascertain before absenting himself that the leave has been sanctioned, and on no account should he proceed on leave in anticipation of sanction. Members already on leave and desirous of obtaining an extension must submit their applications in sufficient time for them to be considered and the result communicated before the expiry of the original leave, so as to permit their joining by the due date if the application is refused. Failure to comply with these instructions will render a member liable to be treated as absent without leave.

There is no objection to an officer or other member of the office establishment leaving the station after office hours, provided that it does not entail absence from office on the next succeeding working day. On no account should an officer or other member of the establishment, without obtaining prior permission in writing (in the case of an officer from the Principal Controller/Controller or an officer acting for him/her and in the case of Assistant Accounts Officer/ Section Officer (Accounts)/Senior Auditor/Auditor/Clerk/ MTS from the officer under whom he is directly serving), proceed to an outstation when there is an probability or likelihood that by so doing he/she will be unable to return to duty at the time, the office opens on the next working day.

An individual who has been granted leave should await proper relief and make over charge of his appointment to the individual detailed to relieve him. This will also apply to an application for leave supported by a Medical Certificate unless such a certificate definitely states that the individual concerned should be immediately relieved of his duties in which case he will be relieved if possible, on the same day.

Whenever a member of the office is prevented by sickness or other unforeseen reason from attending office, he should invariably address the Principal Controller/Controller by letter or by post-card the same day explaining the cause of absence. Any member absent through sickness for more than 2 days

49 will be required to furnish a medical certificate from Authorised Medical Attendant/Registered Medical Practioner.

The procedure laid down in the Annexure to this Chapter should be followed in the matter of grant of leave etc. on account of illness to the Gazetted and non- Gazetted personnel of the Department.

Note. The Possession of a certificate as described in the Annexure to this chapter does not in itself confer upon the Government servant concerned any right to leave.

No member of the establishment who has been granted leave on medical certificate will be allowed to return to duty unless medical certificate of fitness from the Authorised Medical Attendant/Registered Medical Practioner in the prescribed form is produced.

If a case of sickness of an infectious nature occurs in the family or household of any member of the establishment, he should report the matter to the Medical or Public Health Officer of the station, or the place nearest to the station, and at the same time inform the office, in writing, of the fact of his having done so. In such cases he will be guided by the advice of the Medical Officer as to whether or not he should attend office.

Permission to leave the station at which serving is not required in the case of officers or members of the establishment granted leave other than casual leave. All officers and others who intend to leave the station on being granted leave will, however, notify their leave address to the Administration Section or, in the case of those serving at outstations to the officer under whom serving. They will also communicate immediately any change in address which may occur while on leave. Applications for casual or compensatory leave, should state whether it is the intention of the applicant to leave the station or not; and in the former case, the address on leave should be given.

(i) HOURS OF ATTENDANCE

The normal hours of attendance at office are from 9.00 AM to 5.30 PM or 9.30 AM to 6 PM on all working days (excluding Saturdays) with an interval from 1.00 PM to 1.30 or 1.30 PM to 2.00 PM for tiffin and relaxation. The office will remain closed on all Saturdays. Principal Controllers/Controllers may at their

50 discretion authorise an earlier opening hour/and or adjustment of tiffin hours as a local arrangement but in week. The changes in office hours should, however, be reported to the CGDA subject to the above condition, the hours of attendance of Assistant Accounts Officers/Section Officers (Accounts)/Senior Auditors/Auditors and clerks attached to units and formations (including MES formations) may also be fixed by Pr.Controllers/Controller to conform to the working hours followed by the Units/Formations concerned (5 day week or 6 day week as the case may be) provided they put in uniformly on an average 40 hours a week irrespective of the number of working hours fixed for the unit/formation concerned. In case the offices follow six day week the second Saturday will be observed as closed holiday.

Unless half a day's casual leave has been sanctioned in advance for the forenoon session every member of the establishment is expected to be not merely in office but at work in his/her seat at the commencement of the office hours, viz., 9.00 A.M./9.30 A.M.

(ii) ATTENDANCE REGISTER

An attendance register will be maintained on form S-37 in each Section, LAO'S office, A.L.A.O. Groups etc. The following procedure should be followed in marking the attendance in the register.

(a) At 9-00 A.M./9-30 A.M. (or other official hours of opening the office), the attendance register will be marked as under:-

Initial - for those present. "CL/EL" - for those granted casual leave, earned leave etc. “RH” - for those permitted to avail themselves of restricted holiday. "HL" - for those granted half a day's casual leave for the forenoon session “CCL/PL” - for those granted child care leave/Paternity Leave "L" - (in red ink) for others not present.

(b) The attendance register will be initialled by the A.A.O./S.O. (A) of the Section and submitted immediately to the Accounts Officer/Senior Accounts Officer/ACDA in- Charge Section by 9.05 A.M./9.35 A.M. (i.e., within five minutes of the official hour of opening the office).

51 (c) At 10-00 A.M./10-30 A.M. (i.e. one hour after the official hour of opening the office) in respect of persons marked "L", who have not arrived till then, the symbol "A", (in red ink) will be added after "L".

(d) All persons attending office late will report to the Assistant Accounts Officer/Section Officer (A) immediately on arrival and have their time of arrival noted in the attendance register. They must also submit an application stating the reasons for late attendance. (e) A person who has been granted half a day's casual leave for the forenoon session should also report to the A.A.O./S.O. (A) of the Section immediately, on arrival.

When he/she fails to arrive in office and to report by the hour of conclusion of lunch interval he/she should be asked to take casual leave for the whole day.

Should a Assistant Accounts Officer/Section Officer (Accounts)/Senior Auditor/ Auditor/Clerk/MTS. have attended office some time before the official opening time, and at the time of the opening of the office be away on official business to another Section he should, in order to avoid any dispute arising in the matter of attendance, leave a note initialled and dated on the table of the general clerk of his Section indicating that he is attending to official business (to be briefly stated) in ...... Section. Such an individtial should, on the strength of the Note be marked as having attended office in time, actual attendance being verified when the individual returns to the Section.

At the close of a month, a statement of late attendance will be prepared by the Assistant Accounts Officer/Section Officer (Accounts) of the Section on Form LAY (CDA)-635 (Revised), and submitted to the Accounts Officer/Senior Accounts th Officer/ACDA in-Charge of the Section by the 4 of the month following that to which it relates, for orders, duly supported by the applications from the individual concerned.

Late attendance upto an hour at a time and on not more than two occasions in a month may be condoned by the Group Officers of the Sections at their discretion in exceptional cases after satisfying themselves that it was for genuine and unavoidable reasons. For each late attendance not so condoned, half-a-day's Casual Leave Will be debited to the Casual Leave account of the individual. In case where a government servant wishes to leave early, however, it will be necessary for him to obtain half-a-day's casual leave (in the afternoon) and he should not be allowed to leave the office early with permission.

52 If forfeiture of half a day's casual leave for each occasion of late attendance not condoned does not ensure punctual attendance, suitable disciplinary action may be taken in addition.

Regularity and punctuality in attendance are deemed so important that they should be taken into consideration in framing APAR and determining fitness for increments of Salary, also in granting leave etc., Group Officers/Senior Accounts Officers/ Accounts Officers/ACDA in-Charge Section should frequently go round their sections to ensure that their subordinate staff attend office in time and observe the prescribed hours of lunch interval. Surprise checks may also be carried out by the PCs DA/Cs DA/Joint CDA. In case of persistent late coming or staying away outside lunch hours, disciplinary action may be taken against the individual concerned.

53 7. ANNUAL PERFORMANCE ASSESSMENT REPORT

OFFICERS

Annual Performance Assessment Report( APAR) are submitted by the Principal Controllers/Controllers to the C.G.D.A. in respect of all officers serving under them as soon as possible after the close of each financial year. 180. Annual Performance Assessment Report( APAR) of Senior Accounts Officers / Accounts Officers should be forwarded to the C.G.D.A. in original and copy thereof should be retained by the Principal Controller/Controller concerned. This copy will be kept in a separate file. In the event of an A.O's/S.A.O's transfer to another Principal Controller's/Controller's organisation or on deputation outside the Department' the file will be transmitted to the Principal Controller/Controller to whose organisation the A.O./S.A.O is transferred or to the Pr.Controller/Controller on whose proforma strength the A.O./S.A.O. will be borne during the period of deputation (unless the originating Principal Controller/ Controller is himself the Proforma Principal Controller/ Controller).

W.e.f. 14.5.2009, renamed as Annual Performance Assessment Report (APAR). Note.1 No reports in respect of Accounts Officers/Senior Accounts Officers retiring on or prior to the 30th June of the year concerned are necessary. 181. Annual Performance Assessment Report( APAR) in respect of the A.Os/S.A.Os on deputation outside the Department will be called for from the borrowing organisation by the respective proforma Pr.Controllers/Controllers. On receipt after keeping copies of the reports, the Principal Controllers/ Controllers will accept and transmit the original reports to the C.G.D.A. 182. “A pen picture of the officer reported upon based on the overall qualities of the officer including areas of strength and lesser strength and his attitude towards the weaker sections will be indicated by the reporting officer in the box provided for the purpose and reviewing authority will also remark in the column provided for the purpose, on the pen picture reflected by the reporting officer. There will be no separate column in the APAR for overall assessment apart from pen picture.”

The Confidential Reports on AOs/SAOs should be initiated by ACDA/DCDA and will be submitted to the JCDA/Addl.CDA for review as per Annexure-I and to the Pr.Controller/Controller for grading and acceptance. In case AO/S.A.O is directly under JCDA (reviewing officer), the JCDA/Addl.CDA will initiate the

54 APAR and submit to his/her immediate superior (P.C.D.A./C.D.A.) for review and acceptance.

Principal Controllers/Controllers should keep a close and wherever possible, personal watch over the A.Os./S.A.Os serving under them, and write or confirm their APAR from their own knowledge of their work, conduct and efficiency. The object to be kept in view in writing the APAR should be to state explicitly and in detail the distinctive merits or weakness of each officer, and to give an accurate and a complete picture of his capabilities as may be possible.

Annexure-I Guidelines regarding filling up of APAR with numerical grading (i) The columns in the APAR should be filled with due care and attention and after devoting adequate time. (ii) It is expected that any grading of 1 or 2 (against work output or attributes or overall grade) would be adequately justified in the pen-picture by way of specific failures and similarly; any grade of 9 or 10 would be justified with respect to specific accomplishments. Grades of 1-2 or 9- 10 are expected to be rare occurrences and hence the need to justify them. In awarding a numerical grade the reporting and reviewing authorities should rate the officer against a larger population of his/her peers that may be currently working under them. (iii) APARs graded between 8 and 10 will be rated as `outstanding' and will be given a score of 9 for the purpose of calculating average scores for empanelment/ promotion. (iv) APARs graded between 6 and short of 8 will be rated as `very good' and will be given a score of 7. (v) APARs graded between 4 and short of 6 will be rated as `good' and given a score of 5. (vi) APARs graded below 4 will be given a score of zero.

Note 2. In case where the Principal Controller/Controller desires to initiate the report himself, in respect of officiating Accounts Officer he is quite competent to do so.

Adverse Annual Performance Assessment Report( APAR)will be communicated to the officers concerned by the Principal Controller/ Controller. The representation against grading would lie to officer superior to the accepting officer.

If an officer has not served under the Principal Controller/Controller concerned for at least three months at the time of submission of the Annual Performance Assessment Report( APAR), a MTPAR ( Mid Term Performance Assessment

55 Report) from the Principal Controller/Controller under whom he/she served for the major portion of the year, will be obtained and furnished.

In order to avoid delay in the submission of the Annual Performance Assessment Report( APAR), a Principal Controller/Controller handing over charge on or after the Ist January will leave on records a report on every officer who has served under him/her in that year from April onwards.

The report of an officiating A.O. will be written in the prescribed form only if he has Stbeen officiating in that grade at least three months prior to 31 March of the year concerned.

A confidential personal file will be maintained for each officer except the officers in the Senior Administrative grade. This file will contain all papers relating to the Censure or praise of the officer other than his Annual Performance Assessment Report( APAR). Papers bearing on other matters connected with the officer which are of permanent interest as distinct from those relating to pay and allowances etc. will also be recorded in this file.

A yearly extract from this file pertaining to the year under report will be forwarded to the C.G.D.A. with the officer's Annual Performance Assessment Report( APAR). If there is no extract to be sent, a `Nil' report should be forwarded. On an officer's transfer, the Confidential personal file will be sent to his new office.

(ii) ASSISTANT ACCOUNTS OFFICERS, SECTION OFFICER (ACCOUNTS), SUPERVISOR (ACCOUNTS)

Copies of Annual Performance Assessment Report( APAR)of permanent Assistant Accounts Officer upto a specified Roster number will be called for by the C.G.D.A. each year and will be furnished by Principal Controllers/Controllers by the stipulated date. Copies of Annual Performance Assessment Report( APAR)of officiating Assistant -Accounts Officer should not be sent to the Controller General of Defence Accounts, unless he calls for them.

The Annual Performance Assessment Report( APAR)on Assistant Accounts Officer, Section Officer (Accounts), Supervisor (Accounts) will be written by the officer in charge of the Section and after getting them graded by the Group

56 Officers, will be forwarded to the Administration' Section for submission to their Controller/ Principal Controller.

The Annual Performance Assessment Report( APAR) on Assistant Accounts Officer, Section Officer (Accounts), Supervisor (Accounts) serving under a LAO/RAO/ Officer in immediate charge of a particular office will be written by the respective officers and submitted to Administration' Section of the Principal Controllers/Controller's Main Office for getting them graded by the Reviewing Officer and submission to the joint Controller/Addl. Controller/Controller/Principal Controller for acceptance.

In the case of Assistant Accounts Officers, Section Officers (Accounts) of Accounts Section of M.E.S. formations and Assistant Accounts Officer, Section Officer (Accounts) serving in other formations, the reports will be written by the L.A.O./R.A.0. concerned who will take into consideration any recommendations or complaints on the work or conduct of the individuals made by their G.Es., Commanding Officers etc., and will forward them to the Administration' Section of the Pr.Controller's/Controller's Main Office for getting them graded by the Reviewing Officer and submission to the Joint Controller/Addl. Controller/ Controller/Principal Controller for acceptance.

(iii) SENIOR AUDITORS, AUDITORS, CLERKS, TYPISTS, DATA ENTRY OPERATORS AND CANTEEN EMPLOYEES

The Annual Performance Assessment Report( APAR) on senior Auditors, Auditors, Clerks, Typists DEOs and MTS will be written annually by the A.A.O./Section Officer (Accounts) on the prescribed forms and after getting them reviewed by the Accounts Officer/Senior Accounts Officer will be forwarded to the Administration' Section for submission to the Assistant Controller/Deputy Controller (Administration)/Joint Controller in convenient batches with office notes, specifically making a mention of all outstanding as well as adverse reports.

No report need be written in respect of a Senior Auditor/ Auditor/ Clerk/ Typist/ DEO/ Canteen Employee or Stenographer who has not served for a minimum period of one year on the date on which it is written [viz. 31" March of the year concerned].

57 The Annual Performance Assessment Report( APAR)on Auditors/Clerks (including Senior Auditors employed on Local Audit, MES Audit, or in a Pay Accounts Office (ORs), Pay Accounts Office (Def. Civ) or Accounts Office of a Factory or with a unit or formation including M.E.S. formation) will be written and dealt within the same manner as those of the Assistant Accounts Officer/Section Officer (Accounts), Supervisor Accounts initially serving under L.A.O./P.A.O./R.A.O./A.O. etc.

58 8. CCS (CONDUCT) RULES INCLUDING WOMEN HARASSMENT

A. Do's and Don'ts

Maintain absolute integrity at all times.

1) Maintain absolute devotion to duty at all times. 2) Those holding responsible posts - maintain independence and impartiality in the discharge of your duties. 3) Maintain a responsible and decent standard of conduct in private life. 4) Render prompt and courteous service to the public. 5) Observe proper decorum during lunch break. 6) Report to superiors the fact of your arrest or conviction in a Criminal Court and the circumstances connected therewith, as soon as it is possible to do so. 7) Keep away from demonstrations organized by political parties in the vicinity/neighbourhood of Government offices. 8) Maintain political neutrality 9) Manage private affairs in such a way as to avoid habitual indebtedness or insolvency. 10) If any legal proceedings are instituted for the recovery of any debt due from you or for adjudging you as an insolvent, report the full facts of such proceedings to the Competent Authority. 11) Act in accordance with Government policies Observe courtesy and consideration to Members of Parliament and State Legislatures. Don'ts: - 1. Do not make joint representations in matters of common interest. 2. Do not indulge in acts unbecoming of a Government servant. 3. Do not be discourteous, dishonest and partial. 4. Do not adopt dilatory tactics in your dealings with the public. 5. Do not convey oral instructions to subordinates. (If done for unavoidable reasons, confirm them in writing as soon as possible.) 6. Do not practice untouchability. 7. Do not associate yourself with any banned organizations. 8. Do not join any association or demonstration whose objects or activities are prejudicial to the interest of the sovereignty and integrity of India, public order or morality. 9. Do not give expression to views on Indian or foreign affairs, while visiting foreign countries. 10. Do not get involved in unauthorized communication of any official document or any part thereof or classified information to any Government servant or any other persons to whom you are not

59 authorized to communicate such document or classified information. 11. Do not join or support any illegal strike. 12. Do not enter into any private correspondence with Foreign Embassies or Missions/High Commissions. 13. Do not accept lavish or frequent hospitality from any individual, industrial or commercial firms, organizations, etc., having official dealings with you. 14. Do not accept any offer of the cost of passage to foreign countries or hospitality by way of free board and lodging there, if such offers are from foreign firms contracting with Government. 15. Do not accept invitations to you and members of your family for free inaugural flights offered by Air India, Indian Airlines Corpora- tion or Foreign Airliners. 16. Do not give or take or abet giving or taking of dowry or demand any dowry directly or indirectly from the parent or guardian of a bride or bridegroom. 17. Do not accept any gift from any foreign firm, which is having official dealings. 18. Do not engage yourself in canvassing business of Life Insurance Agency, Commission Agency or Advertising Agency owned or managed by the members of your family. 19. Do not lend money to or borrow money from or deposit money as a member or agent, with any person, firm or private company with whom you are likely to have official dealings. Do not otherwise place yourself under pecuniary obligation with such person, firm or private company. 20. Do not approach your subordinates for standing surety for loans taken from private sources either by you/your relations/friends. 21. Do not undertake private consultancy work. 22. Do not speculate in any stock, share or other investment. 23. Do not purchase shares out of the quota reserved for friends and associates of Directors of Companies. 24. Do not bid at any auction of property where such auction is arranged by your own officers. 25. Do not stay as guest with Foreign Diplomats or foreign nationals in India. 26. Do not invite any Foreign Diplomat to stay with you as your guest in India. 27. Do not accept or permit your wife or dependants to accept passage money or free air transport from a Foreign Mission/Government or Organization.

60 28. Do not bring any political influence in matters pertaining to your service. 29. Do not consume any intoxicating drinks or drugs while on duty. 30. Do not appear in public place in a state of intoxication. 31. Do not indulge in any act of sexual harassment of any woman at her work place. 32. Do not employ children below 14 years of age. 33. Do not accept award of monetary benefits instituted by Private Trusts/Foundations, etc.

B. Acts conduct and commissions which amount to misconduct:

The following acts, conduct and commissions of a Government servant amount to misconduct: -

1. If the act or conduct is prejudicial or likely to be prejudicial to the interests of the master or to the reputation of the master. 2. If the act or conduct is inconsistent or incompatible with the due or peaceful discharge of his duty to his master. 3. If the act or conduct of a servant makes it unsafe for the employer to retain him in service. 4. If the act or conduct of the servant is so grossly immoral that all reasonable men will say that the employee cannot be trusted. 5. If the act or conduct of the employee is such that the master cannot rely on the faithfulness of his employee. 6. If the act or conduct of the employee is such as to open before him temptations for not discharging his duties properly. 7. If the servant is abusive or if he disturbs the peace at the place of his employment. 8. If he is insulting and insubordinate to such a degree as to be incompatible with the continuance of the relation of master and servant. 9. If the servant is habitually negligent in respect of the duties for which he is engaged. 10. If the neglect of the servant, though isolated, tends to cause serious consequences. 11. Willful insubordination or disobedience, whether alone or in combination with others, to any lawful and reasonable order of a superior. 12. Infidelity, unfaithfulness, dishonesty, untrustworthiness, theft and fraud, or dishonesty in connection with the employer's business or property.

61 13. Strike, picketing, gherao, striking work or inciting others to strike work in contravention of the provisions of any law, or rule having the force of law. 14. Gross moral misconduct, acts subversive of discipline, riotous or disorderly behaviour during working hours at the establishment or any act subversive of discipline. 15. Riotous and disorderly behaviour during and after the office hours or in office premises. 16. Habitual late attendance. 17. Negligence or neglect of work or duty amounting to misconduct Habitual negligence or neglect of work. 18. Habitual absence without permission and overstaying leave. 19. Conviction by a Criminal Court.

NOTE- The terms ‘servant’ and ‘master’ have been used in Court judgments to indicate the relationship between a subordinate Government servant and his superiors in the hierarchy of all Central Government Offices.

C. Activities requiring permission / sanction

1. Prior permission/sanction of the prescribed authority is necessary: 2. To join educational institution or course of studies for University degree. 3. To join Civil Defence Service. 4. To enroll as member of St. John Ambulance Brigade. 5. To join Territorial Army 6. To join Home Guards Organization 7. To join foreign language classes conducted by Indo-Foreign Cultural Organization. 8. To own wholly or in part or conduct or participate in the editing or management of any newspaper or other periodical publication or electronic media 9. To give evidence in connection with any enquiry conducted by any person, committee or authority.

Exception: (i) Giving evidence at an enquiry before an authority appointed by Government, Parliament or a State Legislature; or (ii) Giving evidence in any judicial enquiry; or (iii) Giving evidence at any departmental enquiry ordered by authorities subordinate to the Government

10. To ask for or accept contributions to or otherwise associate himself in the raising of any funds or other collections in cash or in kind in pursuance of any object whatsoever. 11. To accept gifts from near relatives and personal friends, when the value exceeds prescribed limits. 12. To accept membership of Book Clubs run by Foreign Agencies. 13. To receive any complimentary or valedictory address or accept any testimonial or attend any meeting or entertainment held in his honour or in the honour of any other Government servant.

Exception:

(i) To take part in informal farewell entertainment held on occasions like retirement or transfer. (ii) To attend and speak at functions and ceremonies performed by others in respect of purely non-political or cultural institutions. 14. To engage directly or indirectly in any trade or business, or hold an elective office, or canvass for a candidate for an elective office, in any body, or canvass in support of any business of insurance agency, commission agency, etc., owned or managed by any member of his family. 15. To accept fee for work done for any private or public body or person. 16. Acceptance of a part-time lectureship in an educational institution, which is in the nature of a regular remunerative occupation. 17. To enroll himself as an Advocate with the Bar Association (subject to the condition that the Government servant does not engage himself in the legal profession so long as he continues in Government service). 18. To accept remuneration for services rendered regularly to co-operative societies. 19. To undertake medical practice during spare time on purely charitable basis, if registered as a practitioner in any system of medicine. 20. To enter into negotiations with private firms to secure commercial employment even while in service. 21. To acquire or dispose of any immovable property either directly or through Power of Attorney by lease, mortgage, purchase, sale, gift or otherwise either in his own name or in the name of any member of his family, if the above transaction is with a person having official dealings with the Government servant. 22. To enter into transactions in movable property, if its value exceeds prescribed limits and if the transaction is with a person having official dealings with the Government servant.

63 23. (a) To acquire by purchase, mortgage, lease, gift or otherwise, either in his own name or in the name of any member of his family any immovable property situated outside India. (b) To dispose of, by sale, mortgage, gift or otherwise or grant any lease in respect of any immovable property situated outside India which was acquired or held by him either in his own name or in the name of any member of his family. (c) To enter into any transaction with any foreigner, foreign Government, foreign organization or concern i. For the acquisition, by purchase, mortgage, lease, gift or otherwise, either in his own name or in the name of any member of his family of any immovable property. ii. For the disposal of, by sale, mortgage, gift or otherwise, or the grant of any lease in respect of immovable property which was acquired or is held by him either in his own name or in the name of any member of his family. 24. To have recourse to any Court or to the press for the vindication of any official act this has been the subject matter of adverse criticism or an attack of a defamatory character. 25. To stay with Foreign Diplomats and foreign nationals abroad. 26. To be members of or actively participate in the activities of Indo-Foreign Cultural Organizations. 27. In the case of pensioners who, immediately before retirement, were Group ‘A’ Officers, to accept any commercial employment before the expiry of two years from the date of retirement.

In the case of Items 8, 9, 20, 21, 22 and 23 above, if the permission sought for is not refused within the time limit specified below, a Government servant is free to assume that the permission sought for has been granted.

Item No. Time-limit

20, 21 ...... 30 days.

22 ...... 60 days.

23 ...... 3 months.

64 D. Activities not requiring permission / sanction

In the following cases, permission of the prescribed authority is not necessary:

1) To seek redress in Courts of Law or in Central Administrative Tribunals of grievances arising out of employment or conditions of service. 2) To participate during spare time in 'Shramdhan' organized by Government Departments or Bharat Sewak Samaj. 3) To become members of Samyuktha Sadhachar Samithi. 4) To publish a book himself or through a publisher, in the bona fide discharge of his duties. 5) To submit Memoranda before Pay Commissions by individual Government servants in their individual capacity (individual grievances should not be put to the Commission). 6) To participate in Flag Day Collections on a voluntary basis 7) To participate in the fund raising efforts of the “National Foundation for Communal Harmony”. 8) To undertake honorary work of a social or charitable nature 9) To undertake occasional work of a literary, artistic or scientific character. 10) To participate in sports activities as an amateur 11) To take part in the registration, promotion or management (not involving the holding of an elective office) of a literary, scientific or charitable society or of a club or similar organization or a co-operative society substantially for the benefit of Government servants.

E. Unauthorized absence-Break in service

1. Wilful absence from duty not covered by grant of leave will be treated as dies non for all purposes, viz., increment, leave and pension. Such absence without leave standing singly and not in continuation of any authorized leave of absence will constitute an interruption in service entailing forfeiture of past service for the purpose of pension and requires condonation by the Appointing Authority for counting past service for pension. Condonation of such break for pension should be considered suo motu and cannot be refused as a matter of course, except in exceptional and grave circumstances.

2. Unauthorized absence after leave will be debited against his half pay leave account; excess, if any, being treated as extraordinary leave. However, he will not be entitled to any leave salary.

65 3. All cases of unauthorized absence from duty or in continuation of leave will render a Government servant liable to disciplinary action, treating it as misconduct.

4. Unauthorized absence will be deemed to cause an interruption or break in service with attendant disabilities

(a) During a strike-declared illegal-of employees working in industrial establishments.

(b) Acting in combination or in concerted manner, such as during a strike of other employees.

"Strike” includes a general, token, sympathetic or similar strike and participation in a bandh or similar activities.

5. Order on break in service is to be invoked under FR 17-A after issuing notice and hearing representation, if any.

6. Disabilities: Ineligibility to LTC, to appear in departmental examinations if prescribed minimum continuous service is affected by the order.

7. The order will not affect special pay and special allowances and promotion through DPC.

8. The Appointing Authority will act on the representation for condonation of break in service in the light of the guidelines prescribed. The fact that breaks in service has not been condoned for FR 17-A disabilities should and need not influence adversely in deciding the question of condonation for pension.

9. Dies non- Only individual cases of unauthorized absence from duty, which is not in pursuance of concerted action by a group of employees acting in combination, is to be treated as dies non. Dies non-does not constitute break in service, but only the days treated as dies non are not counted as duty for any

F. Government servants and politics

Activities considered objectionable –

66 1. To be a member of any political party or organization taking part in politics

2. To be a member or otherwise associated with or having connection with any banned organization and other extremist left parties.

3. Taking part in, subscribing in aid of, or assisting in any way, any political movement in India relating to Indian affairs.

4. Attending meetings organized by political parties not in the nature of a public meeting and held contrary to any prohibitory order or without permission.

5. Taking active part in holding rallies in support of any political party by arranging for crowds and arranging transport for bringing crowds.

6. Getting mixed up with demonstrations organized by political parties held in or passing through the vicinity of the Government office.

7. Speaking at or taking active or prominent part in organizing or conducting meetings of any political party.

8. Proposing or seconding the nomination of a candidate at an election.

9. Canvassing or otherwise interfering with or using his influence in connection with or taking part in an election to any legislature or local body.

10. Acting as election agent, polling agent or counting agent of a candidate at election.

11. Displaying on his person, vehicle or residence of any electoral symbol in connection with an election.

12. A Government servant should endeavour to prevent any member of his family from taking part in, subscribing in aid of, or assisting in any other manner any movement or activity which is (or tends to be directly or indirectly) subversive of the Government. If he is unable to do so, he should make a report to that effect to the Government.

Activities, which are permitted: -

67 1. In due performance of a duty imposed on him, making normal arrangements during election tours of Ministers to enable them to carry out their responsibilities as Ministers.

2. Exercising his right to vote in an election. He should not give any indication of the manner in which he proposes to vote or has voted.

3. Participating with due permission in the activities of non-official and non- political organizations not interfering with due discharge of his official duties.

4. Occasional attendance in political meetings

G. Property Transactions

1. Transactions by Government servant out of own funds.

(i) Immovables: When a Government servant acquires, or disposes of any immovable property or through Power of Attorney, directly by lease, mortgage, purchase, sale, gift or otherwise either in his own name or in the name of any member of his family, he should give prior intimation to the prescribed authority regarding such transactions.

(ii) Movables: Any transaction in movable property by the Government servant either in his own name or in the name of any member of his family should be reported to the prescribed authority within one month of such transaction, if the value of such property exceeds

(a) Rs. 20,000 in the case of Group A/Group B, Officers, or

(b) Rs. 15,000 in the case of Group C/Group D, employees.

In both the cases, if the transaction is with a person having official dealings with the employee, previous sanction of the prescribed authority is necessary.

Movable property includes:

(a) Jewellery.

(b) Insurance Policies, the annual-premia of which exceeds Rs. 10,000 or 1/6 th of the total annual emoluments of the official (whichever is less)

68 (d) Loans advanced or taken by such employees, whether secured or not.

(e) Motor cars, motor cycles and other means of conveyance, and

(f) Radios, television sets, radiograms and refrigerators.

NOTE- In addition, if the total transactions in shares, securities, debentures, mutual funds, etc., during a calendar year exceed Rs. 50,000 by a Group `A'/`B' officer and Rs. 25,000 in the case of a Group ‘C’/ ‘D’ employee, intimation is to be sent to the prescribed authority.

Prescribed authority- The Head of Department for Group ‘A’ and Group ‘B’ Officers, and Head of Office for others

2. Transactions of family members

Transactions entered into by the family members of a Government servant out of their own funds (including stridhan, gifts, inheritance, etc.) in their own names, need not be reported to Government (such transactions do not attract Conduct Rules)

3. Annual property returns, by 31st January

Group ‘A’ and Group ‘B’ Officers shall submit an annual return “as on 31st December” every year giving full particulars of immovable property inherited/owned/acquired/held by them on lease or mortgage either in their own name, or in any of their family member's name, or in any other person's name. If there is no change, in any year, it is enough if an entry "No change" or “same as last year” is made in the return.

4. Transactions with foreigners or in property outside India

Transaction in immovable property situated outside India and transaction in immovable property with any foreigner/foreign Government/foreign organization/foreign concern require previous sanction of the prescribed authority whether the transaction is in the official's name or in any of his family member's name.

5. Construction of house

Construction of a house amounts to acquisition of immovable property for which intimation/sanction is required. This is independent of sanction of Government loan. Same is the case where the expenditure incurred on repairs or

69 minor construction work in respect of any house is estimated to exceed Rs.10, 000.

6. Time-limit for permission

If the prescribed authority does not communicate/refuse its sanction within sixty days of the receipt of the request in respect of cases covered by 4 above and within thirty days in all other cases, the official is free to assume grant of sanction.

7. Punitive action

Non-furnishing of returns in time or furnishing wrong information will be ‘good and sufficient reason’ for taking disciplinary action against the officer.

H. Acceptance of Gifts

1. General order

Government servants should not accept or permit any member of his family or any other person acting on his behalf to accept any gift except in certain cases.

2. Exception. (a) When report necessary- customary gifts may be accepted from near relatives and personal friends having no official dealings on occasions such as weddings, anniversaries, funerals, or religious functions. In such cases, the Government servant should report to the Government if the value of the gift exceeds the following limits: -

From near relatives and from personal friends having no Cadre official dealings

Group ‘A’ Rs. 7,000

Group ‘B’ Rs. 4,000

Group ‘C’ Rs. 2,000

Group ‘D’ Rs. 1,000

(b) When sanction necessary - In any other case, including from any firm other than those referred to in Item 4 below, if the value of the gift exceeds Rs. 1,500 in respect of Group `A' / Group ‘B’ Officers and Rs. 500 in respect of

70 Group ‘C’/ Group ‘D’ officers, it should not be accepted except with the sanction of the Government.

If the sanction sought for is not refused within 30 days, it may be assumed that the sanction sought for has been granted.

3. From foreign dignitaries

Government servants, being members of Indian delegation or otherwise, may receive and retain gifts from foreign dignitaries if the market value of gifts received on one occasion does not exceed Rs. 1,000. Acceptance and retention of gifts in all other cases, is to be regulated by the instructions on the subject.

4. From foreign firms

Government servants should not accept any gift from any foreign firm which is either contracting with the Government or is one with which they had, have or likely to have official dealing.

5. Gift

Gift includes free transport, boarding, lodging, or other service or any other pecuniary advantage provided by any person other than a near relative or personal friend having no official dealings with the Government servant

6. From Private Trusts

Government servants should not accept any awards of monetary benefits instituted by Private Trusts/Foundations.

I. Restrictions regarding marriage

1. Before appointment

Bigamous marriage being a disqualification, the following persons is ineligible for appointment under Government:

(a) Who has entered into or contracted a marriage with a person having a spouse living; or

(b) Who, having a spouse living, has entered into or contracted a marriage with any person.

71 Prescribed declaration in this regard is required to be obtained from every new entrant to Government service.

A person will be exempted from the above restrictions only if Government is satisfied that such a marriage is permissible under the personal law applicable to such a person and the other party to the marriage and there are other grounds for so doing.

2. After appointment.

Similar restrictions continue even after appointment in Government service. A Government servant should not

(a) Enter into or contract a marriage with a person who has already a living spouse;

(b) Enter into or contract a marriage with any person if the Government servant has a spouse living.

3. If an employee not governed by the Hindu Marriage Act, desires to contract a marriage while the spouse is living, he has to apply to the Government for permission to marry either under the personal law applicable to him or on other grounds. Such applications will be scrutinized by the Competent Authority as to the adequacy of the grounds for allowing an exception to Government's general policy and orders issued.

4. Any employee, governed by the Hindu Marriages Act, whose spouse is living cannot enter into or contract a second marriage unless the earlier marriage is terminated by means of divorce obtained from a competent Court of Law. Even a marriage which is legally null and void by reason of there being a spouse living at the time of the marriage would disqualify the person concerned for appointment to/continuation in Government service.

5. A divorcee need not seek permission to contract a second marriage with a divorcee or a person having no spouse living.

6. When a Government servant marries or is married to a foreign national, the fact should be intimated to the Government

J. Dowry

72 1. Dowry prohibited: A Government servant shall not

(a) Give or take or abet the giving/taking the dowry.

(b) Demand any dowry directly or indirectly from the parent or guardian of a bride/bridegroom.

2. "Dowry" defined: Dowry means any property or valuable security given or agreed to be given either directly or indirectly

(a) By one party to a marriage to the other party; or

(b) By the parents of either party to a marriage or by any other person to either party to the marriage or to any other person at or before or any time after the marriage in connection with the marriage.

It does not include 'Dower' or 'Maher' under the Muslim personal law Section 2, Dowry Prohibition Act, 1961 (Act 28 of 1961).

"Valuable Security"

Denotes a document, which is, or purpose to be a document whereby any legal right is created/extended/transferred/restricted/ extinguished/released or whereby any person acknowledges that he lies under legal liability or has not a certain legal right-- Section 30, Indian Penal Code (45 of 1860).

3. Wedding Gifts

Voluntary gifts given at the time of marriage to the bride / bridegroom are permissible; but a signed list of such presents should be maintained. The presents should be of a customary nature and their value should be commensurate with the financial st4tus of the giver- Section 3 (2) of Dowry Prohibition Act, 1961.

4. Consequences of violation

Any violation of the Dowry Prohibition Act by a Government servant will constitute a good and sufficient reason for instituting disciplinary proceedings against him, in addition to such legal action as may be taken against him in accordance with the provisions of the Act.

5. Dowry Death

73 If a Government servant is involved in a case of “Dowry Death”, it is a serious offence. For action to be taken, see under the subject "Suspension" in the Chapter “Discipline Rules”.

K. Sexual Harassment of working women 1. Sexual Harassment defined-

Unwelcome sexually determined behaviour, whether directly or by implication, such as:

1. Physical contact and advances. 2. Demand or request for sexual favours. 3. Sexually coloured remarks. 4. Showing pornography. 5. Any other unwelcome physical, verbal or non-verbal conduct of sexual nature. 2. Unbecoming of a Government servant-

Any act of sexual harassment of women employees attracts the provisions of Rule 3 (1) (iii) of Conduct Rules, as an act unbecoming of a Government servant and amounts to misconduct.

3. Criminal Proceedings-

If such an act of sexual harassment amounts to any specified offence under the Indian Penal Code or under any other law, complaint should be made to the appropriate authority for taking criminal action for such misconduct.

4. Complaint Mechanism-

An appropriate complaint mechanism should be created in every organization for redress of such complaints and time-bound treatment of the complaints should be ensured. Victims or witnesses should not be victimized or discriminated against while dealing with such cases. The report of the Complaints Committee shall be treated as an enquiry report.

5. Request Transfer-

The victims of sexual harassment have the option to seek transfer of the perpetrator or their own transfer.

74 9. CCS (CCA) RULES

Disciplinary Proceedings

The procedure to be followed in disciplinary cases against Government servants is laid down in detail in the Central Civil Services (Classification, Control and Appeal) Rules, 1965. These rules have been framed in conformity with the provisions of Article 311 of the Constitution. These rules along with Article referred to have necessarily to be studied carefully and thoroughly by all authorities who have been vested with disciplinary powers. These rules and instructions and clarifications issued by various authorities from time to time in regard to the application of these rules, find a place in this Compilation. It is absolutely necessary that the procedure as laid down in these rules and the various instructions issued there under are required to be followed rigidly. Any failure to observe the proper procedure, either willfully or through gross negligence is liable vitiate the entire proceedings rendering them null and void.

A brief outline of the implications of the various rules and instructions for the guidance of handling disciplinary cases is given below

PRELMINARY ENQUIRY

1. Whenever intimation is received about the commission of an offence by an employee, a preliminary enquiry is conducted, not necessarily by the appropriate disciplinary authority. This is held for the purpose of collection of facts in regard to the conduct and work of the Government servant concerned in which he may or he may not be associated. Such a preliminary enquiry may even be held ex prate, for it is merely for the satisfaction of the concerned authority. At this enquiry, all available evidences and relevant documents should be collected and in important cases, evidences of witnesses be reduced to writing and got signed by them, if possible, in the presence of the employee concerned. During the course of such an enquiry, for the sake of fairness, the Government servant complained against should normally be given an opportunity to say what he may have to say about the allegations against him to find out if he is in a position to give any satisfactory information or explanation, which may render any further investigation unnecessary.

2. The preliminary enquiry is in the nature of a ‘fact-finding enquiry’ where there can be ex prate examination or investigation and ex prate reports. The

75 investigation report along with the preliminary evidences collected is then examined by the appropriate authority to come to a decision whether a prima facie case exists for initiation of formal disciplinary proceedings. The officer responsible for the decision should take care not to express, as for as possible, any definite opinion on the merits of the final outcome of the case.

3. The question to be decided at this stage is not whether a Government servant is guilty or not of an allegation. It is to be seen whether a prima facie case exists of a certain offence/misconduct/misbehaviour/dereliction of duty. It is just to find out whether an offence has taken place and if so, whether the Government servant is prima facie involved in it. If there is prima facie evidence of commission of a criminal offence beyond reasonable doubt, initiation of criminal proceedings is to be considered. If, on the other hand, prima facie evidence is based only on preponderance of probability, then departmental proceedings may be appropriate.

4. A doubt has been expressed whether departmental action can be taken only when any particular rule of the Conduct Rules has been violated. It is not so. It is not necessary that every misconduct should be covered by breach of a rule. Proceedings can be initiated not only for misconduct but also misbehaviour, which is not included in the book of rules. It is open to take action in respect of misconduct, which falls outside the Government servant's official functions if it reflects on his reputation for good faith, honesty, integrity and devotion to duty.

5. The argument that as there is no loss to Government there is no misconduct is not correct. Loss of public funds is not an essential element of misconduct. The essential element is perverse conduct or absence of good conduct. Even if the act is known to cause no loss to public funds, misconduct or attempt to commit can exist. Both attempt and abetment of misconduct has to be viewed with the same seriousness. Mala fide is not a necessary element for proving misconduct. It might be that malafides are not always evident, but they can be inferred. Repeated incidents also point to motive.

6. Past good or bad conduct of a Government servant should in no way influence action, if a clear misconduct is made out prima facie.

INITIATION OF PROCEEDINGS

1. Decision to charge sheet an officer should be taken only when full facts have been gathered and evaluated and there is controvertible inference that

76 misconduct has been committed. Once a decision has been taken that formal disciplinary proceedings should be instituted against the Government servant under the rules, the disciplinary authority will need to decide whether proceedings should be taken under Rule 14 or Rule 16, i.e., for imposing a major or minor penalty. It has to be borne in mind that the nature of disciplinary action and the quantum of punishment are to be commensurate with the gravity of the offence alleged to have been committed. At this stage, the seriousness of the misconduct and the character of the charged official come into consideration. Major penalty proceedings may be appropriate in cases such as involving gross irregularity or negligence, misuse of official position, disclosure of secret or confidential information, false claims, i.e., where there is distinct lack of character. Cases, which involve moral turpitude or failure to maintain integrity, would always justify initiation of major penalty proceedings.

2. An illustrative but not exhaustive list of types of cases involving moral turpitude and failure to maintain integrity is available at Instruction (3) under Rule 14 of CCS (CCA) Rules.

SUSPENSIONS

1. At this stage itself, the competent authority has to examine whether pending disciplinary proceedings the official is to be placed under suspension and issue orders accordingly in the Form prescribed.

APPROPRIATE DISCIPLINARY AUTHORITY IN MAJOR PENALTY PROCEEDINGS:

1. None of the major penalties can be imposed on any person who is a member of a Civil Service of the Union or an All India Service or holds a civil post under the Union by an authority subordinate to that by which he was appointed. Under no circumstances, the appointing authority can delegate his power to a subordinate authority. The underlying idea is that a Government servant is entitled to the judgment of the authority by whom he had been appointed or of an authority superior to -that authority and that he should not be awarded any major penalty by a lower authority in whose judgment he may not have the same faith. The provisions will apply to dismissal or removal, whether in a disciplinary case or on account of conviction of a Government servant in a Court of Law or on any other ground.

77 2. It is, therefore, necessary that before any action is initiated under Rule 14 with a view to imposing any of the major penalties on an official, it should first be verified by the present disciplinary authority whether or not he is lower in rank than the officer who actually appointed the official. In case, the appointing authority is of higher rank than the present disciplinary authority the fact should be reported to the Department/Ministry concerned for issue of President's Orders nominating another officer to act as the disciplinary authority in that particular case as per Instruction (4) under Rule 12.

3. If in a particular case a Government servant was appointed by a higher authority than the one which was competent to make appointment to the post of Government servant was appointed by a particular authority but subsequently the power to make appointment to that post or grade was delegated to a lower authority, it is only that higher authority which actually appointed the Government servant in question to the post from which he is sought to be removed or dismissed, that can exercise the power of imposing any of the major penalties. In the case of appointments made on the basis of selection, that authority which makes the actual appointment and not that which made or approved the selection will be the competent one. If a Government servant is appointed by one authority in a temporary capacity and is confirmed by a higher authority, the competent authority will be the higher authority which confirmed the Government servant and not the authority which initially appointed him.

4. An order imposing a major penalty passed by an authority subordinate to the appointing authority contravenes the provisions of the rules and in the case of punishment of dismissal/removal, the provisions of Article 311 (1) and hence defective and any subsequent confirmation of such an order by the competent authority will not validate it. In such a case, it is necessary for the competent authority to start fresh proceedings if the circumstances of the case so warrant.

5. Disciplinary authority in respect of an official is to be determined with reference to his posting at the relevant stage of the disciplinary case w id not with reference to his posting and status at the time of commission of the offence.

6. There is no bar for the authority that conducted the preliminary enquiry functioning as disciplinary authority if he happens to be so. In case the charged official makes allegation against the disciplinary authority, he is obviously likely to be prejudiced in the case and cannot be reasonably expected to take

78 independent decision free from bias, the punishing authority should refrain from dealing with the case himself and should refer it to the next higher authority to determine whether an independent enquiry officer should be appointed to enquire and report on the allegations made against the officer or the case may be dealt with by the punishing authority himself. If the report is found baseless, the disciplinary authority may be asked to take action and if some substance is found in the allegations, the next higher authority should deal with the case himself.

PROCEDURE FOR IMPOSING MINOR PENALTIES

1. On receipt of all the relevant papers connected with the preliminary enquiry the competent authority should take a decision whether the proceedings should be initiated for a major or a minor penalty. In cases in which the authority decides that proceedings should be initiated for imposing a minor penalty, the authority will inform the Government servant concerned in writing of the proposal to take action against him in the form prescribed accompanied by a statement of imputations of misconduct or misbehaviour for which action is proposed to be taken, giving him such time as may be considered reasonable, ordinarily not exceeding ten days, for making such representation as the Government servant may wish to make against the proposal. The memorandum should be signed only by the disciplinary authority, except when this power has been delegated to others constitutionally or legally.

2. The grounds on which it is proposed to take action should be reduced to the form of a definite charge or charges. The charges should be clear, specific and precise. A separate charge should be framed in respect of each separate offence. It is desirable that the charges should not be of a petty nature or unnecessarily numerous. They should not, except where the charge is one of inefficiency or incompetence, relate to matters, which have already been the subject of previous official enquiry and decision. Care should be taken that no expression of opinion as to the guilt of the accused official is contained in the wording of the charge. A charge may be framed only when there is some act in violation of the rules in different service manuals, CCS (Conduct) Rules, different circulars or general letters issued. It is, therefore, of greater importance to quote that rule or order in support of the charge invariably, the breach of which has constituted the charge.

79 3. The statement of allegations on which these charges are based should contain a dispassionate and objective enumeration of the order of events or succession of facts or any other corroborative material on which it is proposed to rely for bringing home the charges. Care should be taken that no opinion or anything that can be construed as an opinion as to the guilt of the official should appear therein.

4. Rule 16 does not provide for the accused Government servant being given the facility of inspecting records for preparing his written statement of defense. There may, however, be cases in which documentary evidence provides the main grounds for the action proposed to be taken. The denial of access to records in such cases may handicap the Government servant in preparing his representation. Requests for inspection of records in such cases have to be considered by the disciplinary authority on merits.

5. After taking into consideration the representation of the Government servant or without it, if no such representation is received from him by the date specified, the disciplinary authority will proceed, after taking into account such evidence as it may think fit, to record its findings on each imputation of misconduct or misbehaviour. If as a result of its examination of the case and after taking the representation made by the Government servant into account, the disciplinary authority is satisfied that the allegations have not been proved, the Government servant may be exonerated. An intimation of such exoneration has to be sent to the Government servant in writing. In case the disciplinary authority is of the opinion that the allegations against the Government servant stand substantiated, it may proceed to impose upon him any of the minor penalties specified in Rule 11, which it is competent to impose.

6. Under Rule 16 (1) (b) the disciplinary authority may, if it thinks fit, in the circumstances of any particular case, decide that an enquiry should be held in the manner laid down in sub-rules (3) to (23) of Rule 14, all the formalities beginning with framing of articles of charge, statement of imputation, etc., will have to be gone through. For example, in a case in which the Government servant desires to be heard in person or has requested for access to records or where the disciplinary authority considers it necessary to have the evidence of a number of witnesses for substantiating the allegations, the disciplinary authority may consider holding such an enquiry. In such cases, the procedure to be

80 followed will be the same as prescribed for an enquiry into a case in which a major penalty is proposed to be imposed.

7. Under Rule 16 (1-A) if in a case after considering the representation made by the Government servant it is proposed to withhold increments of pay and such withholding of increments is likely to affect adversely the amount of pension payable to the, Government servant or to withhold increments of pay for a period exceeding three years or to withhold increments of pay with cumulative effect for any period, the enquiry envisaged in Para. 5.6 supra has to be held before making any order imposing on the Government servant any such penalty. Separate form has been prescribed for initiation of further proceedings.

8. When the intention is to issue a fresh charge-sheet later, the order cancelling the original one or dropping the proceedings should be carefully worded so as to mention the reasons for such an action and indicating the intention of issuing a subsequent charge-sheet appropriate to the nature of charges.

PROCEDURE FOR IMPOSING MAJOR PENALTIES

1. Under Clause (2) of Article 311 no person who is a member of a civil service of the Union or an All India Service or holds a civil post under the Union shall be dismissed or removed or reduced in rank except after an inquiry in which he has been informed of the charges against him and given a reasonable opportunity of being heard in respect of those charges.

2. As soon as a decision has been taken by the competent authority to start disciplinary proceedings for a major penalty, that authority will draw up on the basis of the material gathered during the preliminary investigation, the charge- sheet in the form prescribed, duly accompanied by a statement of articles of charge, statement of imputations of misconduct or misbehaviour in support of the articles of charge, list of documents with which the articles of charge framed are proposed to be sustained and list of witnesses by whom the articles of charge framed are proposed to be sustained. The memorandum should be signed by the disciplinary authority, except when this power has been delegated constitutionally or legally.

3. A charge may be described as the essence of an allegation setting out the nature of the accusation in general terms, such as negligence in the performance of official duties, inefficiency, breach of conduct rule, etc. The articles of charge

81 should be framed with great care. Each charge should be expressed in clear and precise terms and should not be vague.

4. The following guidelines will be helpful in framing a charge sheet: -

a) A separate charge should be framed in respect of each separate transaction/event or a series of related transactions/events amounting to misconduct/misbehaviour. b) If the transaction/event amounts to more than one type of misconduct then all the misconducts should be mentioned. c) If a transaction/event shows that the Government servant must be guilty of one or the other of misconducts depending on one or the other set of circumstances, then the charge can be in the alternative. d) Multiplication or splitting up of charges on the basis of the same allegation is to be avoided. e) The articles of charge should first give plain facts and then mention the nature of misconduct/misbehaviour. f) The wording of the charge should not appear to be an expression of opinion as to the guilt of the accused. Any statement, which snacks of expression of opinion and draws some positive conclusions against the Government servant, should be strictly avoided. g) A charge should not relate to a matter, which had already been the subject matter of an inquiry resulting in conviction/punishment/acquittal/exoneration, unless it is based on benefit of doubt or on technical consideration. h) A charge should not refer to the report on preliminary investigation. i) There is no bar to include all charges of violation of departmental rules as well as criminal offences, which can be taken up departmentally, e.g., misappropriation of Government money, defalcation and theft of departmental materials, etc. In the case of departmental proceedings, reference to various clauses of the Indian Penal Code should be avoided. The proceedings should be based on the failure to observe departmental rules and regulations. For instance, in the case of theft of a registered or insured article the charge against an employee may not be theft of that article but failure to account for the article entrusted to him. j) All the data, figures, dates, etc., included in the imputation should be carefully checked before the issue of the charge-sheet as lot of difficulties crop up when come clerical error in these figures or dates later on comes to notice. 5. Rule 3 (1) of the Central Civil Services (Conduct) Rules, 1964, provided that a Government servant shall at all time maintain absolute integrity and devotion to duty and do nothing unbecoming of a Government servant. This rule serves the specific purpose of converting acts of misconduct not covered by other

82 specific provisions of the Rules. It is therefore, necessary to satisfy in the first instance whether the alleged acts of misconduct do not attract the provisions of any specific rule before taking recourse to Rule 3 (1) ibid. Where action is taken under Rule 3 (1) particularly on grounds of unbecoming conduct, special care should be taken to eliminate cases of a trivial nature and to ensure that disciplinary proceedings under Rule 3 (1) are not initiated on grounds, which are unjustified.

6. The statement of imputation should give a full and precise recitation of the specific and relevant acts of commission or omission on the part of the Government servant in support of each charge including any admission or confession made by the Government servant and any other circumstances, which it is proposed to take into consideration. In particular, in cases of misconduct/misbehaviour, it should mention the conduct/behaviour expected or the rule violated. It should be precise and factual. In particular, it would be improper to call an Investigating Officer's report a statement of imputations. While drafting the statement of imputations it would not be proper to mention the defense given at the preliminary investigation and enter into a discussion of the merits of the case. Wording of the imputations should, however, be clear enough to justify the imputations in spite of the likely version of the delinquent. It should be drafted in the third person and in the past tense.

7. The list of witnesses should contain the names of those witnesses who will be able to give positive evidence to substantiate the allegations. All material particulars given in the allegations, such as dates, names, figures, totals of amounts, etc., should be carefully checked, with reference to the original documents and records, before such documents are included in the list of documents. In case, there are no documents or witnesses, NIL statements should be appended as Annexures-III and IV to the charge sheet.

8. When disciplinary proceedings are initiated on the complaint of a private party, there should not normally be any necessity to indicate the name of the complainant unless he is a material witness in the case. When, however, proceedings are initiated on the basis of the evidence collected after making investigations into the complaint, there should not be any necessity to indicate the name of the complainant or the fact that the investigations were started as a result of the particular complaint.

83 9. The charge sheet together with its enclosures should be served in person if he is on duty and his acknowledgement taken or sent by registered post, acknowledgement due. If the Government servant evades acceptance of the charge-sheet and/or refuses to accept the registered cover containing the same, the charge-sheet will be deemed to have been duly delivered on him as refusal of a registered letter normally tantamounts to proper service of its contents. If it is not possible to trace the Government servant and serve the charges on him, the disciplinary authority may take recourse to Rule 19 (ii) and finalize the proceedings after dispensing with the inquiry on the ground that it is not reasonably practicable to hold one.

10. Rule 14 (4) is not intended for submission of any elaborate statement of defense but only to give an opportunity to the Government servant to admit or deny his guilt. For admitting or denying the charges, no inspection of documents is necessary. Hence the rules do not provide for inspection of documents by the accused official for the submission of his written statement at this stage. As a measure to cut down delay in the disposal of disciplinary case, copies of statements of witnesses cited be supplied to the Government servant along with the charge sheet, wherever possible.

11. If the delinquent in reply to the charge sheet tenders an unconditional, unqualified and unreserved apology and thus owns his guilt, it implies that he is admitting the charges and is begging to be excused. Such an unconditional apology can be easily distinguishable from one in which the delinquent while politely denying the charges, begs for pardon. The admission should, however, be expressed in writing. It is not sufficient to say that it is implied in his statement. It has been held that while one may not adopt the concept of confession as construed under the Criminal Law for purposes of departmental enquiry, the statement to be utilized as confession must, at any rate, admit the material facts on the basis of which an inference about the guilt of the person making the statement could be drawn in unambiguous terms.

12. If the written statement of defense all the charges are admitted by the Government servant, the disciplinary authority may take such evidence as it may think fit, record its findings on each charge and take further action on the findings in the manner prescribed in Rule 15.

13. If the disciplinary authority finds that any or all of the charges have not been admitted by the Government servant in his written defense or if no written

84 statement of defense is received by him by the specified date, the disciplinary authority may itself inquire into such charges as are not admitted or appoint an Inquiry Officer to inquire into the truth of the charges. Unless unavoidable under special circumstances the Disciplinary Authority should refrain from being the Inquiry Officer.

14. While appointing a separate Inquiry Officer the following points are to be borne in mind. In making a selection, the disciplinary authority should pay due regard to the seriousness of the alleged offence and also to the status of the accused officer. Mere knowledge in a general way about an incident does not debar a person from functioning as an Inquiry Officer, as such prior knowledge cannot be presumed to bias him. But, if an officer who detects the misconduct holds the enquiry, he may be said to have prejudged the issue. Similarly, where the official is the complainant himself, and also the principal witness, he can be said to be biased. In fairness to the accused officer, as well as to the Inquiry Officer, the enquiry should not be entrusted to an officer who held the preliminary enquiry and expressed a definite opinion on the allegations, especially, where such opinion is adverse to the accused, or to an officer directly subordinate to him. It has been held desirable that only disinterested officers are appointed as Inquiry Officers. There is no bar to the immediate superior officer holding an inquiry but as a rule, the person who undertakes this task should not be suspected of any prejudice or bias in such cases. The inquiry should be conducted by an officer who is sufficiently senior to the officer whose conduct is being inquired into, as inquiry by a junior officer cannot command confidence, which it deserves.

15. According to the existing instructions an application can be moved by a Government servant against the appointment of a particular Inquiry Officer on grounds of bias. This should obviously be done at the earliest stage, i.e., soon after the appointment of the Inquiry Officer and not after the proceedings have commenced and reached an advanced stage, unless there are compelling grounds. If any application is moved, the proceedings should be stayed and the application referred along with the relevant material to the appropriate reviewing authority for consideration on merits, on the facts and circumstances brought out alleging bias on the part of the Inquiry Officer and passing appropriate orders thereon.

16. If an Inquiry Officer is changed in the middle of a case or if a case is transferred to another Inquiry Officer, then it is within the discretion of the

85 Inquiry Officer to hear the case de novo or from the stage which it had reached, keeping in mind the fact that the charged officer must receive fair and just treatment consistent with avoidable waste of time.

17. Inquiry proceedings should not be stayed except under orders of a Court of competent jurisdiction or under the written orders of the Disciplinary Authority or when an application is made as referred to in Paragraph 15 above.

18. The disciplinary authority at this stage may also nominate a Presenting Officer who would present on its behalf the case in support of the articles of charge. Ordinarily a Government servant belonging to the departmental set up who is conversant with the case will be appointed as the Presenting Officer. In cases involving complicated points of law, where it may be considered desirable, a legal practitioner may be appointed to present the case on behalf of the disciplinary authority. In cases in which the initiation of disciplinary action is the result of investigation made by the Special Police Establishment, there is no objection to an official of that Establishment being nominated as the Presenting Officer.

19. Under the rules the accused officer has also the right to take the assistance of another Government servant or one under suspension or a retired Government servant to present the case on his behalf. The term "another Government servant" has to be interpreted liberally to include all civil servants of the Union Government as defined in Rule 2 (h) of the CCS (CCA) Rules. The retired Government servant should have retired from service under the Central Government. The restrictions placed in this regard in respect of employees in service and retired employees are: -

(i) The assisting Government servant should be from the headquarters station of the Government servant or at the place where the inquiry is held. If the Inquiry Officer so permits having regard to the circumstances of the case, the assisting Government servant may be from any other station. (ii) The assisting Government servant should not have three cases on hand in which he has to give assistance, while the retired Government servant five cases. For this purpose, the accused officer is not required to take prior permission of the disciplinary authority. He need send only intimation to this effect to the disciplinary authority. It is, however, necessary for the Government servant nominated to assist the accused officer to obtain the permission of the former's

86 controlling authority to absent himself from office in order to assist the accused Government servant during the enquiry. If, for any compelling reasons, it is not practicable for the controlling authority of the assisting Government servant to relieve him without undue delay or without serious detriment to the public interest to present the case of the delinquent official, he should inform the Inquiry Officer about it with reasons for being communicated to the accused official well in time, so that the accused official could choose any other Government servant to assist him. In other words, the rules do not vest any discretion in the disciplinary authority in regard to the nomination of a Government servant to present the case of the delinquent official.

20. The following points should be kept in view by the Disciplinary Authority while considering the request of the charged official to nominate a serving/retired Government servant to assist him:

(i) The Government servant should be permitted to have the assistance of a legal practitioner if the Presenting Officer appointed by the Disciplinary Authority is a legal practitioner or a Public Prosecutor or Prosecuting Officer of the CBI or a Government Law Officer (such as Legal Adviser, Junior Legal Adviser). (ii) The above condition would apply if the retired Government servant is also a legal practitioner. (iii) Although no guidelines exist for permitting nomination of a legal practitioner by the charged official, in a case where the Presenting Officer appointed by the Disciplinary Authority is not a legal practitioner, the discretion should be used in favour of the delinquent official and he should be allowed to engage lawyers as a part of reasonable opportunity if the facts and the mass of evidence are very complicated and a layman will be at sea to understand the implications thereof and prepare a proper defense. The decision to allow the assistance of a legal practitioner to the accused official has to be taken on the merit of the case in an impartial manner.

It should be ensured that any order refusing to allow the engagement of a legal practitioner should specifically state that the circumstances of the case do not warrant such an appointment.

RULE 14 INQUIRIES

87 1. To enable the Inquiry Officer to hold the enquiry, the Disciplinary Authority is required to send copies of the documents as indicated in sub-rule (6) of Rule 14, to him. The original documents should normally be available with the Presenting Officer and only if there is no Presenting Officer should these be sent to the Inquiry Officer.

2. On receipt of the documents, the Inquiry Officer will send a notice to the charged officer asking him

a) To present himself for a preliminary hearing at the appointed place on a date and time, within ten days; and b) To intimate the name of his defense assistant. 3. Normally the venue of the enquiry should be where documents and witnesses are readily available; but the Inquiry Authority is free to fix any other venue according to the requirements of the case and convenience of the parties, from time to time.

4. At the preliminary hearing, the charged officer will be required to state categorically whether he pleads guilty to any of the articles of charge and if he has any defense to make. If he pleads unequivocally guilty, the Inquiry Officer will proceed to record his findings. If the charged officer refuses or omits to plead or pleads not guilty, the Inquiry Officer will start the formal enquiry. If the charged officer fails to appear at the preliminary hearing, the Inquiry Officer may fix the dates and the place for regular hearing and send intimation under acknowledgement due, to reach him in good time.

5. The Inquiry Officer will also record an order that the charged officer may for the purpose of preparing his defense (a) inspect within five days documents, a list of which was sent to him with the charges; (b) submit a list of witnesses to be examined on his behalf with their addresses indicating what issues they will help in clarifying; and (c) submit a list of additional documents which he wishes to have access to, indicating the relevance of the documents to the presentation of his case. If the charged officer fails to indicate and convince the Inquiry Officer about the issues to which the deposition of his witnesses and the production of additional documents are relevant, the Inquiry Officer may reject the request for examining the wit nesses or requisitioning the documents. If, however, he finds that the witnesses are relevant, they will be examined.

6. There are two types of documents to which a Government servant involved in departmental enquiries may have a right of access in defending himself. In the

88 first category are included the documents on which the disciplinary authority relies and intended to prove the charges, viz., those in Annexure-III to the charge-sheet. In the second category fall the documents, which even though not relied upon by the disciplinary authority, are nevertheless required by the Government servant for preparing his defense and defending himself. While the right of access to the first category of documents is complete, it is not unlimited in the case of the latter category. If the documents are relevant the Inquiry Officer will arrange to have them requisitioned to be shown to the charged officer. If not relevant, he may in writing refuse to requisition such documents. The question of relevancy should be looked at from the point of view of the defense and if there is any possible line of defense to which the document may, in some way, be relevant, though the relevance is not clear to the disciplinary authority at the time the request is made, the request for access should not be rejected. Even when the Inquiry Officer has decided to call for documents for making them available to the charged officer, the authority having the custody of possession of the documents may, if it is satisfied for reasons to be recorded that the production of such documents would be against public interest or security of the State inform the Inquiry Officer accordingly. Though it is open to the Government to deny access if in its opinion such records are not relevant to the case or it is not desirable in the public interest to allow such access, the power to refuse access to official records should be very sparingly exercised. In every case, where it is decided to refuse access to any official document, the reasons for refusal should be cogent and substantial and should invariably be recorded in writing. The guiding principle is that the power to access to any document must be exercised in such a way, which does not prevent the delinquent from defending himself adequately and does not cause him any prejudice.

7. The Ministry of Law has held that under the existing framework of the rules, no authority other than the Head of the Department can be said to have the custody or the possession of documents of the Department though such custody or possession may be `constructive'. In the circumstances, a subordinate authority is not competent to claim privilege in respect of the requisitioned documents. The authority concerned should transmit the requisition to the Head of the Department for his decision and communicate the same to the Inquiring Authority as soon as possible. Privilege for not producing documents can be

89 claimed only by the Head of the Department. Hence, whenever it is felt that a document is confidential and it is considered that it will be prejudicial in the interest of the State to produce the same in departmental proceedings, the case should be referred to the Ministry concerned.

8. The following documents should not be summoned:

a) Report of preliminary inquiry/investigation. b) File dealing with the disciplinary case against the Government servant. c) Advice of the Central Vigilance Commission d) Advice of the Ministry of Law.

9. It is not ordinarily necessary to supply copies of the various documents and it would be sufficient if the Government servant is given such access as is permitted under the rules and instructions. Supply of copies of previous statements of witnesses is, however, necessary in view of the provision in Note below Rule 14 (11). Copies of the previous statements of all witnesses who are to be examined during the enquiry are to be made available to the charged officer well in time, where asked for, i.e., three clear days before the examination of the witnesses, if not supplied along with the charge sheet.

10. On the date and at the time fixed for the inspection of documents the charged officer will be given facilities to see them. The inspection will be in the presence of an officer deputed for the purpose and it should be ensured that the documents are not tampered with during the course of inspection. The charged officer may keep notes or extracts, but will not be allowed to take Photostat copies. The Inquiry Officer may, however, arrange to supply Photostat copy, in case he decides that authenticity of any documents is in doubt.

11. During the enquiry, the Presenting Officer will produce all documentary evidence and also have his witnesses examined. Normally, the Presenting Officer should himself ensure that his witnesses are present. He may in appropriate cases have summons issued by the Inquiry Officer through registered post acknowledgement due. If any person is summoned in his official capacity, the notice should be served through the controlling authority. Notice to private witnesses may be sent direct to them or through the Presenting Officer or the charged officer, as the case may be. A Government servant cannot refuse to be a witness in an enquiry against another Government servant. Non-

90 compliance to summons can be treated as conduct unbecoming of the public servant rendering himself liable for disciplinary action.

12. Examination of witnesses, departmental as well as defense, and recording of evidence, is the important stage in the inquiry proceedings. Personal hearing enables the Inquiry Officer to watch the demeanour of the witnesses. Examination of witness will be in three parts--examination-in chief, cross- examination and re-examination. The cross-examination of witnesses produced in support of charges against a Government servant is the most powerful weapon in his hands and is also a very valuable right. It has been held that this right is a safeguard implicit in Article 311 (2) of the Constitution.

13. Although the rules of evidence contained in the Evidence Act are not applicable to departmental proceedings, in the absence of any explanation given to the term “cross-examination” in the departmental rules and instructions, it has been held that it should ordinarily bear the same meaning as it has in the Evidence Act “unless any part of such meaning can be shown to be artificial and not warranted by the rules of natural justice”. Though leading questions (i.e., any question suggesting the answer which the person putting it wishes or expects to receive, is called a leading question) are permissible in cross- examination, they cannot be put in examination-in-chief or in re-examination. Further, the scope of cross-examination is unlimited and need not be confined to the testimony of the witness in the chief examination. They may cover the entire field of defense. They must, however, be relevant to the facts of the case or relate to the credibility of the witness or the evidence given by him.

14. On the contrary, the re-examination, which comes after cross-examination, should be confirmed only to the matters arising out of the cross-examination. The witness cannot be examined on any new fact, except with the permission of the Inquiry Officer and when such permission is granted, the delinquent will automatically have a right of further cross-examination on the points newly brought out. At the end of examination of each witness, the Inquiry Officer may also put such questions as he thinks fit.

15. Admitted documents and facts can be taken note of straightway. Earlier written statement, if any, given by a witness may be read out to him and he may be specifically questioned whether he admits the same or not. If he does so, the statement may be marked as an exhibit and the charged officer asked to proceed with cross-examination. If the witness does not admit the statement in full, then

91 his statement has to be recorded from the very beginning. The Presenting Officer should produce documents, which are disputed, through witnesses. The witnesses should be examined in such a way as to bring out the case in a logical and understandable manner. He will examine the witnesses without putting leading questions.

16. After the examination is over, the witnesses may be cross-examined by the charged officer or his defense assistant. This cross-examination is generally utilized to bring out facts which have not come out in the examination, to remove any discrepancies or to prove the reliability or otherwise of the witnesses. It is the duty of the Inquiry Officer to see that witnesses understand the question properly before answering it and to protect them against unfair treatment. He should disallow questions if considered irrelevant, oppressive or verbose.

General reputation or conduct of a witness should not be allowed to be the subject-matter of examination or cross-examination; but certified copies of conviction to the credit of a witness may be entertained which reflect on the veracity of the witness.

17. After the cross-examination, the Presenting Officer can re-examine his witnesses on any points on which he has been cross-examined, but not on any new matter, unless specifically allowed by the Inquiry Officer, in which case, the charged officer will have the right to further cross-examine the witness.

18. At the discretion of the Inquiry Officer and before the close of the case on behalf of the Disciplinary Authority, the Presenting Officer may produce new evidence not included in the original lists supplied to the accused officer, only when there is an inherent lacuna or defect in the evidence which has been produced originally. New evidence shall not be permitted or called for or any witnesses shall not be recalled to fill up any gap in the evidence. Similarly, the Inquiry Officer may himself call for new evidence or recall and re-examine any witnesses.

19. After the witnesses on behalf of the Disciplinary Authority have been examined, the accused officer will be required to state his defense orally or in writing. He is entitled to produce evidence in support of his defense by examining himself, if need be and any witness to be produced by him. The charged officer or his defense assistant will proceed to examine his witnesses who will then be cross-examined by the Presenting Officer and, if necessary, re-

92 examined again. Though the charged officer cannot be forced to give evidence, if he offers himself as his own witness, he can be examined by the defense assistant and cross-examined by the Presenting Officer.

20. On conclusion of the Government servant's case the Inquiry Officer may generally question him on the circumstances appearing against him in the evidence for the purpose of enabling the Government servant to explain any circumstances appearing in the evidence against him. Thereafter the Presenting Officer as well as the accused officer has the opportunity to state their respective cases orally or to file written briefs, if they so desire. Normally the Inquiry Officer has to hear the arguments that may be advanced by the parties after their evidence has been closed. He can, however, on his own or on the desire of the parties, take written briefs. If he does so, he should first take the brief from the Presenting Officer, supply a copy of the same to the Government servant and take the reply brief of the latter.

21. The entire proceedings conducted by the Inquiry Officer should be reduced to writing. The record should include the names of all those present on each hearing. The Inquiry Officer should invariably record a note on the very day stating the gist of the request or representation made by the Presenting Officer or the Government servant and the orders passed thereon. Such notes should form part of the record of the inquiry. The depositions of each witness is to be taken down on a separate sheet of paper at the head of which will be entered the number of the case, the name of the witness and information as to his age, parentage and calling, etc., to identify him. The depositions will generally be recorded as narration, but on certain points it may be necessary to record the questions and answers verbatim. As evidence of each witness is completed, the Inquiry Officer will read the depositions, as typed or written, to the witness in the presence of the Government servant. Verbal mistakes or mistakes committed in typing in the depositions, if any, will be corrected in their presence. However, if the witness denies the correctness of any part of the record, the Inquiry Officer may, instead of correcting the evidence, record the objection of the witness. The depositions of the witnesses are to be countersigned at every page by the witnesses concerned, the Government servant and the Inquiry Officer so that the validity of the proceedings are not questioned by any one at a later date. The Inquiry Officer will record and sign the following certificate at the end of deposition of each witness: -

93 “Read over to the witness in the presence of the Government servant and admitted as correct/objection of witness recorded.”

If any witness refuses to sign the deposition, the Inquiry Officer will record this fact and append his signature. If a witness deposes in a language other than English, but the deposition is recorded in English, a translation in the language in which the witness deposed should be read to him by the Inquiry Officer, who will record a certificate that the deposition was translated and explained to the witness in the language in which it was deposed.

22. Copies of statements of witnesses recorded from day-to-day should be furnished to the Government servant and to the Presenting Officer each day at the close of the day's proceedings and acquittance obtained.

23. The Inquiry Officer will maintain a daily order-sheet to record in brief the business transacted on each day of hearing. Requests and representations made by their party should also be recorded and disposed of in the sheet. In particular the following points should find mention in the order-sheet:

a) The additional documents and the witnesses asked for by the charged officer in his defense. b) The additional documents and defense witnesses permitted. c) Reasons for disallowing the remaining documents and witnesses. d) Whether the additional documents permitted as relevant were made available for inspection and were inspected by the charged officer. e) If the authority having custody of any such document does not consent to its production, the fact of such refusal. 24. Though the provisions of the Indian Evidence Act and the Criminal Procedure Code are not applicable to departmental inquiries, yet as these provisions are based on principles of natural justice, they should be followed in the conduct of the departmental proceedings though not as meticulously as in the Courts of Law. The Inquiry Officer will afford reasonable opportunity to both sides to present their respective cases to their satisfaction.

94 10. JUDICIAL SYSTEM IN INDIA

INTRODUCTION TO THE JUDICIAL SYSTEM IN INDIA

1. DISTRICT AND SUBORDINATE COURTS:

The District Courts of India are presided over by a judge. They administer justice in India at a district level. These courts are under administrative and judicial control of the High Court of the State to which the district concerned belongs.

The highest court in each district is that of the District and Sessions Judge. This is the principal court of civil jurisdiction. This is also a court of Sessions. Sessions-triable cases are tried by the Sessions Court. It has the power to impose any sentence including capital punishment.

There are many other courts subordinate to the court of District and Sessions Judge. There is a three tier system of courts. On the civil side, at the lowest level is the court of Civil Judge (Junior Division). On criminal side the lowest court is that of the Judicial Magistrate. Civil Judge (Junior Division) decides civil cases of small pecuniary stake. Judicial Magistrates decide criminal cases which are punishable with imprisonment of up to five years.

2. HIGH COURTS

The High Court stands at the head of a State's judicial administration. There are 18 High Courts in the country, three having jurisdiction over more than one State. Among the Union Territories Delhi alone has a High Court of its own. Other six Union Territories come under the jurisdiction of different State High Courts. Each High Court comprises of a Chief Justice and such other Judges as the President may, from time to time, appoint. The Chief Justice of a High Court is appointed by the President in consultation with the Chief Justice of India and the Governor of the State. The procedure for appointing puisne Judges is the same except that the Chief Justice of the High Court concerned is also consulted. They hold office until the age of 62 years and are removable in the same manner as a Judge of the Supreme Court. To be eligible for appointment as a Judge one must be a citizen of India and have held a judicial office in India for ten years or must have practised as an Adovcate of a High Court or two or more such Courts in succession for a similar period.

95 Each High Court has power to issue to any person within its jurisdiction directions, orders, or writs including writs which are in the nature of habeas corpus, mandamus, prohibition, quo warranto and certiorari for enforcement of Fundamental Rights and for any other purpose. This power may also be exercised by any High Court exercising jurisdiction in relation to territories within which the cause of action, wholly or in part, arises for exercise of such power, notwithstanding that the seat of such Government or authority or residence of such person is not within those territories.

Each High Court has powers of superintendence over all Courts within its jurisdiction. It can call for returns from such Courts, make and issue general rules and prescribe forms to regulate their practice and proceedings and determine the manner and form in which book entries and accounts shall be kept. The following Table (*Ann.A) gives the seat and territorial jurisdiction of the High Courts.

ADVOCATE GENERAL There is an Advocate General for each State, appointed by the Governor, who holds office during the pleasure of the Governor. He must be a person qualified to be appointed as a Judge of High Court. His duty is to give advice to State Governments upon such legal matters and to perform such other duties of legal character, as may be referred or assigned to him by the Governor. The Advocate General has the right to speak and take part in the proceedings of the State Legislature without the right to vote.

LOK ADALATS Lok Adalats which are voluntary agencies are monitored by the State Legal Aid and Advice Boards. They have proved to be a successful alternative forum for resolving of disputes through the conciliatory method.

The Legal Services Authorities Act, 1987 provides statutory status to the legal aid movement and it also provides for setting up of Legal Services Authorities at the Central, State and District levels. These authorities will have their own funds. Further, Lok Adalats which are at present informal agencies will acquire statutory status. Every award of Lok Adalats shall be deemed to be a decree of a civil court or order of a Tribunal and shall be final and binding on the parties to the dispute. It also provides that in respect of cases decided at a Lok Adalat, the court fee paid by the parties will be refunded.

JURISDICTION AND SEAT OF HIGH COURTS

Name Year Territorial Seat

96 establishment jurisdiction Allahabad (Bench at Allahabad 1866 Uttar Pradesh Lucknow) Andhra Pradesh 1956 Andhra Pradesh Hyderabad Maharashtra, Goa, Bombay (Benches at Dadra and Nagar Bombay 1862 Nagpur, Panaji and Haveli and Daman Aurangabad) and Diu Calcutta (Circuit Bench Calcutta 1862 West Bengal at Port Blair) Delhi 1966 Delhi Delhi Assam, Manipur, Guwahati (Benches at Meghalaya, Kohima, Aizwal & Guwahati(2) 1948 Nagaland,Tripura, Imphal. Circuit Bench at Mizoram and Agartala & Shillong) Arunachal Pradesh Gujarat 1960 Gujarat Ahmedabad Himachal Pradesh 1971 Himachal Pradesh Shimla Jammu & 1928 Jammu & Kashmir Srinagar & Jammu Kashmir Karnataka(3) 1884 Karnataka Bangalore Kerala & Kerala 1958 Ernakulam Lakshadweep Jabalpur (Benches at Madhya Pradesh 1956 Madhya Pradesh Gwalior and Indore) Tamil Nadu & Madras 1862 Madras Pondicherry Orissa 1948 Orissa Cuttack Patna 1916 Bihar Patna (Bench at Ranchi) Punjab & Punjab, Haryana & 1975 Chandigarh Haryana(4) Chandigarh Jodhpur (Bench at Rajasthan 1949 Rajasthan Jaipur) Sikkim 1975 Sikkim Gangtok

Jurisdiction and Powers of the Supreme Court of India

The Supreme Court of India is a powerful judiciary. The Constitution of India has defined its jurisdiction and powers in detail, it has Original.

97 Appellate and Advisory Jurisdictions Besides these jurisdictions, it has a few other important functions.

These jurisdictions and functions may be discussed under the following categories:

1. Original Jurisdiction:

The original jurisdiction of the Supreme Court is mainly confined to cases regarding the interpretation of the provision* of the Constitution which arise between the Union and the States or between the States themselves. No other Courts can entertain such cases.

The Supreme Court has exclusive jurisdiction in the following types of cases:

(a) Disputes between the Government of India and one or more States.

(b) Disputes between the Government of India and any State or Stales on one side and one or more States on the other

(c) Disputes between two or more States which involve any question of law or fact on which the existence or extent of a legal right depends.

Thus, the original jurisdiction of the Supreme Court includes the cases where either the Union and Units or the federating units are parties. Here the Supreme Court may safeguard the State Governments against the Central encroachment or vice-versa. The Supreme Court is thus expected to act as a balance-wheel in our federation.

The original jurisdiction of the Supreme Court does not include disputes between citizens of different States or those between one State and the resident of another State. Such disputes may come before it under its appellate jurisdiction.

But under Article 32 of the Constitution, a citizen can approach the Supreme Court directly for the enforcement of his Fundamental Rights. In that case the Supreme Court has power to issue directions or orders in the nature of writs of habeas corpus, mandamus, prohibition, quo-warranto, and certiorari or all of them for the enforcement of Fundamental Rights. It may be noted that this jurisdiction of the Supreme Court is not exclusive. The High Courts have also the same power to issue writs for the enforcement of Fundamental Rights.

2. Appellate Jurisdiction:

98 The Supreme Court of India is the highest Court of appeal in the country. It can hear appeals from cases decided by the High Courts and other Tribunals in the States except cases tried by a Court Martial. No appeal can be made to the Supreme Court against the decisions of Military Tribunals. Cases where an appeal can be made to the Supreme Court may be classified as below:-

(a) Constitutional Cases:

The Supreme Court can admit Ian appeal from all High Courts if the High Court certifies that the case involves a substantial question of law as to the interpretation of the Constitution.

Where the High Court has refused to give inch a certificate the Supreme Court may, if it is satisfied that the case involved substantial question of law as to the interpretation of the Constitution, grant special leave to appeal from such Judgment, decree or final order.

Such a certificate is given or such leave is granted, if any party in the case made appeal to the Supreme Court on the ground that the question has been wrongly decided or on any other grounds.

Such cases may be criminal, civil, or other proceedings which should have a constitutional bearing on constitutional law in the opinion of the Supreme Court. Thus the opinion of the Supreme Court and not that of the High Court is final on the question of constitutional interpretation.

(b) Civil Cases:

On all civil cases decided by the High Courts an appeal can be made to the Supreme Court if the High Court certifies-

(i) That the case involves directly or indirectly some claim of property of important nature, or

(ii) That the case is fit one for appeal as it involves substantial question of law. The High Court certifies that the case is a fit one to appeal or in the absence of such certificate of the High Court, the Supreme Court grants special leave to appeal.

On the judgment of a High Court on criminal cases, appeal can be made to the Supreme Court if the High Court –

99 (i) Has on appeal reversed an order of acquittal of an accused person and sentenced him to death, or

(ii) Has withdrawn for trial before itself the cases from any Court subordinate to its authority and in such trial convicted the accused person and sentenced him to death, or

(iii) Certifies that the case is a fit one for an appeal to the Supreme Court subject to such provision contained in the rules made by the Supreme Court in that behalf.

Even in the absence of all these conditions the Supreme Court may grant special leave to appeal to any case decided by the High Court. Article 136 of the Constitution confers discretionary powers on the Supreme Court to grant special leave to appeal from any decision of any Court or Tribunal in the country other than a Court Martial.

It means that the leave to appeal may be granted to any case without having the necessary limitations enumerated above. The power of the Supreme Court to grant special leave to appeal is not subject to any constitutional limitation.

As D. D. Basu writes, “broadly speaking the Supreme Court can exercise this power to grant leave to the aggrieved party in case where the principles of natural justice have been violated even then the party may have no footing to appeal as of right.”

Further the Constitution provides for the enlargement of the jurisdiction of the Supreme Court by an act of Parliament. The Parliament may, by law, confer on the Supreme Court power to issue directions or writs for any purpose other than the enforcement of fundamental rights.

It again may, by law, make provision for conferring on the Supreme Court such ancillary powers as may be necessary to enable it to perform the functions placed upon it under the Constitution. But such law of the Parliament must not be inconsistent with any provisions of the Constitution.

3. Advisory Jurisdiction:

Besides the original and appellate jurisdictions enjoyed by the Supreme Court, it has also advisory jurisdiction on matters of constitutional importance. Article 143 of the Constitution provides that if at any time the President thinks that a question of law or fact has arisen or is likely to arise, which is of such a nature and of such public importance that it is expedient to obtain the opinion of the Supreme Court upon it, he may refer the question to the Supreme Court for

100 consideration and the Court, after such hearing, as it thinks fit, reports to the President its opinion thereon.

It is only the advisory or consultative power of the Supreme Court. The President is not bound to accept the advice of the Supreme Court. However, it is expected that the advisory opinion of the Supreme Court may be final as it is the highest Court of the land.

This provision is included in our Constitution to enable the President to take a decision in the light of the judicial opinion in matters in which he may have doubt. To a certain extent the similar jurisdiction is possessed by the Canadian Supreme Court.

Some of the important references made to the Supreme Court by the President are:

(i) Kerala Education Bill (1959).

(ii) The Indo-Pakistan Agreement in respect of Beru-Bari Union and the exchange of Cooch-Bchar Enclaves (1960).

(iii) The conflict between the U.P. Legislature and the Allahabad High Court (1964).

(iv) Validity of the Special Courts Bill (1978).

(v) Conflict between union Executive and the Election commission over Gujarat election (2001).

It may be relevant to note that the Government have accepted the advisory opinion of the Supreme Court as authoritative and amended the Constitution wherever necessary.

4. The Supreme Court as a Court of Record:

Besides the original, appellate and advisory jurisdiction, the Supreme Court of India possesses a few more powers. Article 129 of the Constitution makes the Supreme Court a Court of Record.

The Court of Record in popular sense means a superior Court whose decisions and judicial proceedings have evidential value and cannot be questioned by any other subordinate Court. Further, the Supreme Court has power to punish individuals for its contempt.

101 The Supreme Court is authorised with the approval of the President of India and subject to any law made by the Parliament, to make rules for regulating the practice and procedure of the Court.

These mainly include the rules regarding the practice of persons before Court, the procedure for hearing appeals, granting of bail, stay of proceedings etc. The Supreme Court has also the power to review its own decisions and orders and thereby may rectify the wrong if any in its judgment.

This power to review its own judgment is necessary because there is no appeal against its judgment. This power is, however, subject to the provisions of laws made by the Parliament or rules made by the Supreme Court.

5. The Supreme Court as the Guardian of the Constitution:

The Supreme Court acts as the guardian of the Constitution in India. In a Federal State, the Constitution is supreme law of the land and the judiciary is usually vested with power to protect the constitutional provisions. The Supreme Court of America is the guardian of its Constitution.

Although there is no specific provision in the Constitution of India declaring the Supreme Court as the guardian of the Constitution, it is implied that in a Federal State, the Supreme Court is to protect the Constitution and act as a balance- wheel between the Centre and the federating units.

The Parliament and the State legislatures are supreme within their respective spheres. The Executives are made subservient to constitutional laws and regulations. If some of them exceed their limited authority the Supreme Court has power to restrict them.

The final interpretation of the Constitution is left to the Supreme Court. Chief Justice Hughes of America once remarked, “Constitution is what the judges say it is”‘. This idea holds true in almost all federal Constitutions.

6. The Supreme Court and Public Interest Litigation:

The role of the Supreme Court of India has been further widened due to emergence of the idea of public interest litigation. Under the principle of public interest litigation, the petition can be filed in the court not only by the aggrieved party but by any conscious person or organisation to seek relief on behalf of the aggrieved party.

The Supreme Court took quite a liberal view and took the stand that matters could be raised even without formally filing a suit. Even letters or telegrams to

102 the Supreme Court by socially conscious citizens or organisations may be treated as writ petitions.

Former Chief Justice of India P.N. Bhagawati laid emphasis on public interest litigation. In 1982 the Supreme Court itself admitted in a case that “it is necessary to demonstrate judicial remedies, remove technical barriers against easy accessibility to justice and that it would readily respond even to a letter addressed by such individual acting pro bono public. No doubt, the Supreme Court has given various reliefs for the poor, uneducated, disabled and helpless people under the public interest litigation.

7. Miscellaneous Functions:

Besides the above functions, the Supreme Court of India also performs certain other functions. As per Article 138 of the

Constitution, the Parliament is empowered to extend by law the jurisdiction of the Supreme Court with respect to any of the matters included in the Union List and with respect to any matter as the Government of India and the Government of any State may by special agreement confer.

The apex court has also the special jurisdiction to decide disputes relating to the election of the President and Vice-President of India. Another special power of the Supreme Court is to enquire into the misconduct of the Chairman and members of the Union Public Service Commission. Again as per Article 141 of the Constitution, the law declared by Supreme Court shall be binding on all courts within the territory of India.

CENTRAL ADMINISTRATIVE TRIBUNAL

Central Administrative Tribunal has been established under the provisions of Administrative Tribunal Act. 1985 to provide cheap and speedy redressal to the employees of Central Govt. and employees of certain other organisations. In the matter of grievances relating to their service.

The setting up of the tribunal is founded on the premise that specialist bodies comprising both trained administrators and those with judicial experience would by virtue of their specialised knowledge, be better equipped to deliver speedy and efficient justice. The Tribunal exercises jurisdiction over all service matters which practically include any matter which can arise before, during or after the employment and connected there with in any manner. Thus, the process of recruitment, all formalities connected with appointments and

103 placements, all conditions of service to employment and its termination, and all matters pertaining to terminal or retirement benefits, are the service matters subject to adjudication by the Tribunals.

The jurisdiction of the tribunal, however, does not cover members of the Armed Forces Offices/servants of Supreme Court or any High Court and the Secretariat staff of the Parliament. These are, however, applicable to the civilians paid from the Defense services estimates.

A person aggrieved by any order pertaining to any matter within the jurisdiction of a tribunal may make an application to the tribunal in the prescribed format for the redressal of grievance. Sometimes the grievance is not directed against any particular order. It may even arise due to inaction of the authorities in a particular case i.e. delay in confirmation, holding of DPC, grant of pension or other retirement benefits. Before approaching the CAT, the employee is expected to have exhausted the remedies available to him under the relevant service rules. In order to be eligible for filing an application before the Tribunal the 'order' complained against must be:-

(a) Final in nature : (b) Passed by an authority competent under the rules to make it : (c) An appeal or representation against it has either been rejected or has remained unanswered for a period of six months.

Notwithstanding, in extraordinary situations the tribunal has been vested with the discretion to entertain applications where the applicant has not exhausted the departmental remedies.

Place of Filing Application

Ordinarily the application is to be filed with the bench in whose jurisdiction —

(i) The applicant is posted for the time being: OR (ii) The cause of action, wholly or in part, has arisen.

Time Limit for Filing Application

Normal period of limitation for agitating a service matter before CAT is:-

104 (a) One year from the date of the final order made in disposal of appeal, representation, revision or memorial (where submitted). (b) One year after the expiry of 6 months from the date on which such appeal or representation, application for revision or memorial was submitted but no final order was made by the Government or other competent authority, thereon. The above time limit can, however, be relaxed by the Tribunal in deserving cases.

As the tribunal has been established with the aim of providing cheap and speedy justice, Section 22 of the Administrative Tribunals Act, 1985 enjoins upon the Tribunal also to decide every application made to it as expeditiously as possible after perusal of the documents, written representations and after hearing such oral arguments as advanced. While doing so the tribunal shall not be bound by strict procedures of CPC, CRPC or Evidence Act. It shall however, be guided by the Principles of Natural Justice. There are two broad principles of Natural Justice , which have acquired universal applicability. Those were enumerated in A.K. Kraipak's case as:-

(a) Nemo judex in cause propria sua i.e. No one shall be a judge in his own cause. In other words, a person deciding a matter must not have any personal interest in the case and (b) Audi Altera — Pattern i.e. No decision shall be given against a party without affording it a reasonable hearing. Lord Denning has summed up these twin principles as 'Impartiality1 and 'Fairness'.

As per procedure in vogue, when an application is filed before CAT, it makes such enquiries as deemed necessary to ascertain if it is a fit case for admission. In case it is satisfied, the application is admitted and notice is issued : to the other party to file the reply within a specified period. If not satisfied, it can also reject the application summarily. This is, however, not done generally. In such cases notice is issued to the other party to show cause why application should not be admitted.

105 Action by the Department

All proceedings before the tribunal are judicial in nature. These, therefore, deserve to be given due respect and acted upon within the time prescribed by the tribunal. Normally Notices are received by the Govt. Departments under the following circumstances:-

(a) Notice to show cause against admission (b) Notice after admission - for the purpose of contesting the case. (c) Notice meant for the employees working under the respondent department. In the types of cases mentioned under sub para ( c ) above, the Head of the Department receiving the notice is required to get the notices served on the private respondents urgently and obtain their acknowledgement. Thereafter an affidavit may be filed in the Registry confirming compliance and enclosing the copies of the acknowledgement.

As regards the notices mentioned at sub paras (a) and (b) above these are meant for the respondent department and call for elaborate action on the part of the receipient to the extent to which he is involved in the case. In case the OA is to be defended by the Department, following action needs to be taken:-

(a) Have the Govt. Counsel appointed. In some benches like Delhi & Bangalore Govt. Counsels are nominated by Litigation Section. In Delhi the office is located in Delhi High Court building. In other benches this work is coordinated by Senior Standing Govt. Counsel. Normally only a Counsel from the approved panel is to be appointed. However, in exceptional circumstances a private advocate outside the panel can also be appointed with prior approval — of the minister incharge of the Ministry/Department defending the case. The Govt. Counsel so appointed may be requested to file appearance and seek time for filing reply. (b) Collect all original' material/files/correspondence leading to issue of the order being challenged. (c) Collect copies of rules/regulations/policy guidelines/ procedures on which impugned order is based. (d) Prepare parawise comments and forward the same to Govt. Counsel

106 together with all supporting documents to draft counter reply to OA. (e) On receipt of draft reply from the Counsel, have it vetted for factual correctness. Also get it vetted by Legal Advisor attached to Ministry/Department. (f) On finalization of reply have it signed by competent officer and file it in CAT registry through your Govt. Counsel. It should be noted that cases are defended challenging the (i) maintainability (ii) on merit. Care should therefore be taken to study the entire case to ascertain if it suffers from any of the following defects:

(i) Limitation - whether case has been filed after expiry of limitation period, (ii) Whether it involves non joinder / misjoinder essential parties. (iii) Whether the case has been filed without exhausting departmental remedies. (iv) Whether the ease does not fall within the jurisdiction of bench where it has been filed. (v) Whether plural remedies have been sought. (vi) Whether the case involves Rejudication. While preparing reply/comments on merits all the allegations made by the petitioners be denied in clear and unambiguous terms. It is the habit of advocates to present same thing in different ways at different places in the OA. Each para, therefore, needs to be carefully studied and commented upon as necessary. In case you are aware of CAT/Court decision in your favour, it has to be brought out in the reply.

A constant liaison may be maintained with the Govt. Counsel defending the case so that reply is drafted/filed in CAT without delay.

Sometimes the petitioners challenge certain policy directives of the Govt. which are controlled by nodal Ministries other than your Ministry, i.e. Ministry of Finance, Ministry of Home Affairs, Department of Personnel and Training etc. in such cases nodal ministries must be consulted even at initial stage while preparing para wise comments/vetting the reply. Where the nodal ministries are not consulted at the initial stages, they may not agree to the implementation of the judgements subsequently resulting in contempt cases.

107 It is to be noted that only one reply is to be filed on behalf of the Union of India. This is to be done by the Department where the petitioner/applicant is serving. Reply should not in any manner reflect the difference of opinion in between the two Ministries/Departments.

In case the OA is being defended by an attached or subordinate office the progress of the case should be watched regularly and a report in the matter sent to the section concerned in the Ministry. Govt. instructions also provide for appointing 'liaison officer' to coordinate cases pending in particular bench and watch progress.

Action when 'CAT' Order is Against the Govt.

In cases where the matter is decided against the Govt. immediate steps should be taken to obtain a copy of the order and analyse the judgement. A view needs to be taken in consultation with the nodal ministry concerned as to whether the judgement should be implemented or a writ appeal needs to be filed in the matter in the High Court. The reference to nodal Ministry for their advice should be made well before the last date for filing Review application before the CAT itself or writ before the High Court.

In cases where it is considered necessary to file Review/Appeal, the following documents will be required.

(a) Certified copy of the CAT/Court order against which review/appeal is proposed to be filed. (b) Copy of original application and reply thereto. (c) Opinion of the Counsel who defended the case. (d) Opinion of the Branch Secretariat, Min. of Law. (e) Grounds on which the order of the CAT/Court orders is proposed to be contested. (f) Whether the above grounds were brought to the notice of the CAT. If not, why these grounds which are now proposed to be advocated in the appeal could not be brought to the notice of the CAT.

108 Review Application

Review application is to be filed within 30 days after the receipt of copy or order sought to be reviewed. It is heard by the same bench which passed the order unless otherwise ordered

Appeal

Clause 2(d) of Article 323 of the Constitution originally enacted, exclude the jurisdiction of High Court and Supreme Court under Articles 226/227 and 32. The Administrative Tribunal Act 1985 and rules made there under therefore, provided that order of CAT could be challenged only before Supreme Court in the from of an SLP under Act, 136.

The above position was however challenged as unconstitutional in L. Chandra Kumar Vs. Government of India. After considering this argument, the Court ruled that the Jurisdiction conferred upon the High Courts under Article 226 and upon the Supreme Court under Article 32 of the Constitution is part of the inviable basic structure of our constitution. While this jurisdiction cannot be ousted the courts and tribunals may perform a supplemented role. The Tribunals created under Article 323 A and article 323 B of the Constitution are possessed of the competence to test the constitutional validity of statutory provisions. All decisions of these tribunals will, however, be subject to scrutiny before a Division Bench of the High Court within whose jurisdiction the concerned Tribunals falls. The Tribunals will, nevertheless, continue to act like courts of first instance in respect of the areas of law for which they have been constituted. It will not, therefore, be open for litigants to directly approach the High Courts even in cause where they question the vires of statutory legislation's (except where the legislations which creates the particular Tribunal is challenged) by overlooking the jurisdiction of the concerned Tribunal.

The Court also ruled that no appeal from the decision of a tribunal will directly lie before the Supreme Court under Act 136 of the Constitution; but, instead, the aggrieved party will be entitled to move the High Court under Article 226/227 of the Constitution and from the decision of the Division Bench of the High Court, the aggrieved party could move the Supreme Court under Article 136 of the Constitution.

Implementation OF THE 'CAT' Order

109 In case the order of the CAT is against the Govt. and it is decided not to file any review/writ appeal, the order needs to be implemented within the stipulated period. In case any delay is anticipated in the compliance, necessary extension of time may be sought from the CAT. Failure to do so would invite contempt proceedings which are a source of embarrassment and therefore, viewed seriously by the Govt.

In certain cases, the Tribunal/CAT may not deliver substantive judgement in the matter and may direct the Govt. to take a final view in the matter based on certain guidelines etc. The Tribunal/Court may desire final decision by a specific date. In all such cases, it is essential to ensure compliance of the orders within the specified time. In case any delay is expected in reaching a final decision in the matter, extension of time from Tribunal/Court should always be sought for. In such cases also, it has to be ensured that the matter is referred to different consulting agencies/departments well before the last date of taking a final decision.

PAYMENT TO THE GOVT. COUNSEL

The instructions with regard to payment to the govt. Counsel for defending the case are contained in Min of Law O. M. no. 26(1)/97 – Judl dated 12 May 87. These instructions provide for payment towards drafting/;filing the reply, defending the case, out of pocket expenses and appearance for each effective hearing in case hearing in the case continues beyond 3 days. Effective Hearing has been defined to be ‘A hearing in which either one or both the parties involved in a case are heard by the Court. If the case is mentioned and adjourned or only directions are given or only judgement is delivered by the Court, it should not constitute an effective hearing but will be termed as non- effective hearing.’ No Payment is to be paid for non-effective hearing. The bill submitted by the Counsel should be carefully scrutinised with reference to the instructions contained in Ministry of Law O. M. ibid. In case of doubt the matter can be referred to Ministry of Law and Justice at New Delhi of its Branch Secretariat concerned.

(1) Notwithstanding anything in this chapter ; The Supreme Court may in its discretion grant special leave to appeal from any judgement determination or sentence or order in any cause matter passed by or made by any court or tribunal in the territory of India. (2) Nothing in clause (1), shall apply to any judgement, determination,

110 sentence or order passed or made by any court or tribunal constituted by under any law relating to the Armed Forces. The jurisdiction of Supreme Court under Article 136 is extraordinary and discretionary under this Article (a) from any judgement, decree, determination or order (b) in any clause or matter (c) passed or made by any court or tribunal in the territory of India. However, this power exercised sparingly and in exceptional cases involving substantial question of law or issue of general importance or where the Supreme Court reaches the conclusions that a person has been dealt with arbitrarily or that the court or tribunal has not given a fair deal to a litigant.

The Supreme Court is not only court of law but court of equity as well. Hence the Court could not deny a party any relief he may be entitled to purely on equitable considerations though not under law. The Court would interfere where the findings of lower court is perverse or supported by no evidence.

Special leave to appeal may however not be granted where the appeal had become academic for instance where the relief sought in the proceedings had become nugatory desire to change in subsequent events, ordinarily the Supreme Court would not entertain an appeal directly against order of an administrative authority where statutory or other alternative remedies are available to the aggrieved party. The circumstances that an appeal has been admitted by special leave does not entitle the applicant to open out the whole case and contest all the findings of facts raised every point which could be raised in High Court/CAT.

Armed Forces Tribunal

The Armed Forces Tribunal Act 2007, was passed by the Parliament and led to the formation of AFT with the power provided for the adjudication or trial by Armed Forces Tribunal of disputes and complaints with respect to commission, appointments, enrolments and conditions of service in respect of persons subject to the Army Act, 1950, The Navy Act, 1957 and the Air Force Act, 1950.It can further provide for appeals arising out of orders, findings or sentences of courts- martial held under the said Acts and for matters connected therewith or incidental thereto.

Besides the Principal Bench in New Delhi, AFT has Regional Benches at Chandigarh, Lucknow, Kolkatta, Guwahati, Chennai, Kochi, Mumbai and Jaipur.

111 With the exception of the Chandigarh and Lucknow Regional Benches, which have three benches each, all other locations have a single bench. Each Bench comprises of a Judicial Member and an Administrative Member.

The Judicial Members are retired High Court Judges and Administrative Members are retired Members of the Armed Forces who have held rant of Major General/ equivalent or above for a period of three years or more, Judge Advocate General (JAG), who have held the appointment for at least one year are also entitled to be appointed as the Administrative Member.

The Tribunal shall transact their proceedings as per the Armed Forces Tribunal ( Procedure) rules, 2008. All proceedings in the Tribunal will be in English. The Tribunal will normally follow the procedure as is practiced in the High Courts of India.

112 11. RTI ACT

APPLICATION OF RTI ACT

1.1 Objective

‘Right to Information’ (RTI) refers to the right of every citizen to access information held by or under the control of public authorities. The basic object of the Right to Information Act is to empower the citizens, promote transparency and accountability in the working of the Government, contain corruption, and make our democracy work for the people in real sense. It is said that information is the oxygen of democracy. If people do not know what is happening in their society, if the actions of those who rule them are hidden, then they cannot take a meaningful part in the affairs of the society. Access to information not only promotes openness, transparency and accountability in administration, but also facilitates active participation of people in the democratic governance process.

1.2 Scope and Extent

The RTI Act’05 extends to whole of India except the State of Jammu and Kashmir. It covers all public authorities whether falling under jurisdiction of Central Government or a State Government. It entitles every citizen to seek information from a public authority in a prescribed manner.

As regards the State of Jammu and Kashmir, the State Government has enacted the Jammu and Kashmir Right to Information Act, 2004.

1.3 Date of Commencement

The RTI Act has fully come into force on October 12, 2005 (120th day of its enactment).However, certain provisions to establish a working framework came into force w.e.f. the date of enactment i.e. June 15, 2005.

1.4 Information

Information is any material in any form. It includes records, documents, memos, e-mails, opinions, advices, press releases, circulars, orders, logbooks,

113 contracts, reports, papers, samples, models, data material held in any electronic form. It also includes information relating to any private body which can be accessed by the public authority under any law for the time being in force.

1.5 Public Authority

A “public authority” is any authority or body or institution of self government established or constituted by or under the Constitution; or by any other law made by the Parliament or a State Legislature; or by notification issued or order made by the Central Government or a State Government. The bodies owned, controlled or substantially financed by the Central Government or a State Government and non-Government organisations substantially financed by the Central Government or a State Government also fall within the definition of public authority. The financing of the body or the NGO by the Government may be direct or indirect.

1.6 Public Information Officer

Public authorities have designated some of its officers as Public Information Officer. They are responsible to give information to a person who seeks information under the RTI Act.

1.7 Assistant Public Information Officer

These are the officers at sub-divisional level to whom a person can give his RTI application or appeal. These officers send the application or appeal to the Public Information Officer of the public authority or the concerned appellate authority. An Assistant Public Information Officer is not responsible to supply the information.

1.8 Right to Information under the Act.

A citizen has a right to seek such information from a public authority which is held by the public authority or which is held under its control. This right includes inspection of work, documents and records; taking notes, extracts or certified copies of documents or records; and taking certified samples of material held by the public authority or held under the control of the public authority.

114 It is important to note that only such information can be supplied under the Act which already exists and is held by the public authority or held under the control of the public authority. The Public Information Officer is not supposed to create information; or to interpret information; or to solve the problems raised by the applicants; or to furnish replies to hypothetical questions.

The Act gives the citizens a right to information at par with the Members of Parliament and the Members of State Legislatures. According to the Act, the information which cannot be denied to the Parliament or a State Legislature, shall not be denied to any person.

A citizen has a right to obtain information from a public authority in the form of diskettes, floppies, tapes, video cassettes or in any other electronic mode or through print-outs provided such information is already stored in a computer or in any other device from which the information may be e-mailed or transferred to diskettes etc.

The information to the applicant should ordinarily be provided in the form in which it is sought. However, if the supply of information sought in a particular form would disproportionately divert the resources of the public authority or may cause harm to the safety or preservation of the records, supply of information in that form may be denied.

In some cases, the applicants expect the Public Information Officer to give information in some particular proforma devised by them on the plea that they have a right to get information in the form in which it is sought. It need be noted that the provision in the Act simply means that if the information is sought in the form of photocopy, it shall be provided in the form of photocopy, or if it is sought in the form of a floppy, it shall be provided in that form subject to the conditions given in the Act. It does not mean that the PIO shall re-shape the information.

This is substantiated by the definition of the term ‘right to information’ as given in the Act, according to which, it includes right to obtaining information in the form of diskettes, floppies, tapes, video cassettes or in any other electronic mode or through print-outs provided such information is already stored in a computer or in any other device. Everywhere in the Act, the word ‘form’ has been used to represent this meaning.

115 Some Information Seekers request the Public Information Officers to cull out information from some document(s) and give such extracted information to them. A citizen has a right to get ‘material’ from a public authority which is held by or under the control of that public authority. The Act, however, does not require the Public Information Officer to deduce some conclusion from the ‘material’ and supply the ‘conclusion’ so deduced to the applicant. It means that the Public Information Officer is required to supply the ‘material’ in the form as held by the public authority, but not to do research on behalf of the citizen to deduce anything from the material and then supply it to him.

1.9 Persons entitled to Right to Information

The Act gives the right to information only to the citizens of India. It does not make provision for giving information to Corporations, Associations, Companies etc. which are legal entities/persons, but not citizens. However, if an application is made by an employee or office-bearer of any Corporation, Association, Company, NGO etc. indicating his name and such employee/office bearer is a citizen of India, information may be supplied to him/her. In such cases, it would be presumed that a citizen has sought information at the address of the Corporation etc.

2.0 Fee for Seeking Information

A person who desires to seek some information from a public authority is required to send, along with the application, a demand draft or a banker’s cheque or an Indian Postal Order of Rs. 10/- (Rupees ten), payable to the Accounts Officer of the public authority as fee prescribed for seeking information.

The payment of fee can also be made by way of cash to the Accounts Officer of the public authority or to the Assistant Public Information Officer against proper receipt.

The applicant may also be required to pay further fee towards the cost of providing the information, details of which shall be intimated to the applicant by the PIO as prescribed by the Right to Information (Regulation of Fee and Cost) Rules, 2005. Rates of fee as prescribed in the Rules are given below:

(a) rupees two (Rs. 2/-) for each page ( in A-4 or A-3 size paper) created or copied;

116 (b) actual charge or cost price of a copy in larger size paper;

(d) for information provided in diskette or floppy, rupees fifty (Rs. 50/-) per diskette or floppy; and

(e) for information provided in printed form, at the price fixed for such publication or rupees two per page of photocopy for extracts from the publication.

As already pointed out, a citizen has a right to inspect the records of a public authority. For inspection of records, the public authority shall charge no fee for the first hour. But a fee of rupees five (Rs. 5/-) for each subsequent hour (or fraction thereof) shall be charged.

If the applicant belongs to below poverty line (BPL) category, he is not required to pay any fee. However, he should submit a proof in support of his claim to belong to the below poverty line. The application not accompanied by the prescribed fee of Rs. 10/- or proof of the applicant’s belonging to below poverty line, as the case may be, shall not be a valid application under the Act. It may be pointed out that there is no bar on the public authority to supply information in response to such applications. However, provisions of Act would not apply to such cases.

2.1 Time-limit for disposal of request.

Sl.No. Situation Time limit for disposing off applications.

1. Supply of information in normal course. 30 days

2. Supply of information if it concerns the 48 hours life or liberty of a person.

3. Supply of information if the application 05 days shall be added to is received through APIO. the time

period indicated at Sr. No. 1 and 2.

117 4. Supply of information if (a) Within 30 days of the application/request is received after receipt of the application transfer from another public authority: by the concerned public authority. (a) In normal course (b) Within 48 hours of (b) In case the information concerns receipt of the application the life or liberty of a person. by the concerned public authority.

5. Supply of information by organizations (a) 45 days from the receipt of application. specified in the Second Schedule: (b) Within 30 days of the (a) If information relates to allegations receipt of application. of violation of human rights.

(b) In case information relates to

allegations of corruption.

6. Supply of information where the The period intervening applicant is asked to pay additional fee. between informing the applicant about additional fee and the payment of fee by the applicant shall be excluded for calculating the period of reply.

7. Supply of information if it relates to Should be provided after third party and the third party has treated following the procedure it as confidential. given in para 2.2 of this part of the document.

2.2 Disclosure of Third Party Information

‘Third Party’ is a person other than the citizen making a request for information and includes a public authority.

118 Information including commercial confidence, trade secrets or intellectual property, the disclosure of which would harm the competitive position of a third party, is exempt from disclosure. Such information shall not be disclosed unless the competent authority is satisfied that larger public interest warrants the disclosure of such information.

If an applicant seeks any information which relates to or has been supplied by a third party and that third party has treated that information as confidential, the Public Information Officer shall consider whether the information should be disclosed or not. The guiding principle in such cases is that except in the case of trade or commercial secrets protected by law, disclosure may be allowed if the public interest in disclosure outweighs in importance any possible harm or injury to the interests of such third party. However, the Public Information Officer would have to follow the following procedure before disclosing such information.

If the Public Information Officer intends to disclose the information, he shall within five days from the receipt of the application, give a written notice to the third party that the information has been sought by the applicant under the RTI Act and that he intends to disclose the information. He shall request the third party to make a submission in writing or orally, regarding whether the information may be disclosed. The third party shall be given a time of ten days, from the date of receipt of the notice by him, to make representation against the proposed disclosure, if any.

The Public Information Officer shall make a decision regarding disclosure of the information keeping in view the submission of the third party. Such a decision should be taken within forty days from the receipt of the request for information.

After taking the decision, the Public Information Officer should give a notice of his decision to the third party in writing. The notice given to the third party should include a statement that the third party is entitled to prefer an appeal under section 19 against the decision.

The third party can prefer an appeal to the First Appellate Authority against the decision made by the Public Information Officer within thirty days from the date of the receipt of notice. If not satisfied with the decision of the First Appellate Authority, the third party can prefer a second appeal to the Information Commission. If an appeal has been filed by the third party against

119 the decision of the Public Information Officer to disclose the third party information, the information should not be disclosed till the appeal is decided.

2.3 Information exempted from disclosure.

There is no obligation to give any citizen any information which may lead to the followings:

• Affect sovereignty and integrity, security, strategic scientific or economic interests of State, relation with foreign State or lead to incitement of an offence.

• Contempt of court.

• Breach of privilege of Parliament or State Legislature.

• Harm competitive position of a third party (commercial confidence, trade secrets or intellectual property)

• Breach of fiduciary relationship.

• Confidential information from foreign Government.

• That which would endanger the life or physical safety or identify the source of information given in confidence.

• Which would impede the process of investigations, apprehension or prosecution of offenders.

• Invasion of privacy - personal information.

Cabinet papers – including records of deliberations of Council of Ministers, Secretaries and other Officers are also exempted.

2.4 Appeal.

It is the responsibility of the Public Information Officer of a public authority to supply correct and complete information within the specified time to any person seeking information under the RTI Act, 2005. There are possibilities that a Public Information Officer may not act as per provisions of the Act or an applicant may not otherwise be satisfied with the decision of the Public Information Officer. The Act contains provision of two appeals to tide over such situations.

120 The first appeal lies within the public authority itself which is made to an officer designated as the First Appellate Authority by the concerned public authority. The First Appellate Authority happens to be an officer senior in rank to the Public Information Officer.

The second appeal lies with the Information Commission. The Central Information Commission (Appeal Procedure) Rules, 2005 govern the procedure for deciding appeals by the Central Information Commission.

2.5 Imposition of Penalty

In case the Information Commission at the time of deciding any complaint or appeal is of the opinion that the Public Information Officer has without any reasonable cause, refused to receive an application for information or has not furnished information within the time specified or malafidely denied the request for information or knowingly given incorrect, incomplete or misleading information or destroyed information which was the subject of the request or obstructed in any manner in furnishing the information, it shall impose a penalty of two hundred and fifty rupees each day till application is received or information is furnished subject to the condition that the total amount of such penalty shall not exceed twenty-five thousand rupees. The Public Information Officer shall, however, be given a reasonable opportunity of being heard before any penalty is imposed on him. The burden of proving that he acted reasonably and diligently and in case of denial of a request that such denial was justified shall be on the Public Information Officer.

Application of RTI Act 1.1 Steps for Disposal of Requests The procedure to be followed by the PIO right from the stage of receipt of application for information till the disposal involves a number of steps as follows:

• Receive application along with the application fee.

• Scrutinise the application received and the fees prescribed.

• If required, render reasonable assistance to the applicant by reducing the oral request to writing.

• Register the application in the Inward Register.

121 • Issue acknowledgement and receipt to the applicant.

• Seek information from other officials within the authority, or, if necessary, send the application to another official concerned (who becomes the PIO with respect to the application in question. A proper register has to be maintained to record all such action taken, as well, for such action is an action in good faith will be an action in good faith on the PIO’s part.

• Transfer the application / part of it to another public authority, if the sought for information pertains to or is closely related to the functions of another public authority, within 5 days of receipt.

• Inform the applicant about such transfers.

• Make necessary entries in the Register being maintained.

• Seek and consider representations of a ‘third party’, if applicable within 5

• In case of rejection, convey reason for it, the period within which an appeal may be preferred and the details of the Appellate Authority to whom appeal can be preferred.

• Intimate the applicant the further fee, representing the cost of providing the information, to be paid along with its calculations.

• (Also) Intimate about the modalities of deposit of fee, the right of the applicant for seeking review of the fees charged and appeal against the calculation.

• Wherever required, provide assistance to citizens for inspection of works, materials, certified samples of materials.

• Waive fees for information requests from citizens belonging to the ‘Below Poverty Line’ category.

• Retain record on each application, disposal etc. so that materials as required may be furnished to appellate authorities in case first / second appeal is preferred and to the public authority concerned in connection with the furnishing of information for the Annual Report of the Information Commission.

122

123 12. OFFICE COMMUNICATION

The different forms of written communication generally used are described below. Each form has a use and, in some cases, a phraseology of its own.

 LETTER  DEMI-OFFICIAL LETTER  OFFICE MEMORANDUM  INTER-DEPARTMENTAL NOTE  TELEGRAM  TELEX MESSAGE  EXPRESS LETTER  OFFICE ORDER –  ORDER  NOTIFICATION  RESOLUTION  PRESS COMMUNIQUE/NOTE  ENDORSEMENT  TELEPHONIC COMMUNICATIONS  CORRESPONDENCE WITH ATTACHED AND SUBORDINATE OFFICES  INTER-DEPARTMENT CONSULTATION

LETTER- It is used for corresponding with foreign governments, State Governments, the Union Public Service Commission, heads of attached and subordinate offices, public enterprises, statutory authorities, public bodies and members of the public generally. A letter begins with the salutation “Sir(s)” as may be appropriate.

DEMI-OFFICIAL LETTER - It is generally used in correspondence between Government officers for an inter-change or communication of opinion or information without the formality of the prescribed procedures. It may also be used when it is desired that matter should receive personal attention of the individual addressed. Since demi-official letter is written in the first person in a personal and friendly tone, it should be addressed by an officer in a ministry/ department who is ordinarily not more than one or two levels below the officer to whom such communication is addressed. Communication to non-officials can also take the form of demi-official letter.

124 OFFICE MEMORANDUM – It is generally used for corresponding with other departments or in calling for information from or conveying information to its employees. It may also be used in corresponding with attached and subordinate offices. It is written in the third person and bears no salutation or supersession except the name and designation of the officer signing it.

INTER-DEPARTMENTAL NOTE – It is generally employed for obtaining the advice, views, concurrence or comments of other departments on a proposal or in seeking clarification of the existing rules, instructions etc. It may also be used by a department when consulting its attached and subordinate offices and vice versa. The inter-departmental note may either be recorded on a file referred to another department or may take the form of an independent self-contained note.

It is used for communication with out-station parties in matters demanding prompt attention. The text of the telegram should be as brief as possible. As a rule no telegram should be issued if an express letter or a letter marked ‘immediate’ or ‘priority’ can serve the purpose.

Telegrams are of two kinds viz. enclair telegrams and cipher code telegram. The former are worded in plain language. The latter are expressed in secret language (code or cipher or both) but a combination in the same telegram of figures and letters having a secret meaning is not permitted. In editing, numbering and issuing of cipher/code telegrams, the instructions issued by the Ministry of External Affairs in respect of external telegrams and by the Ministry of Home Affairs in the case of internal telegrams, should be carefully observed.

There are four grading of urgency authorized for use in State telegrams, viz. ‘SVH’, ‘Most Immediate’, Operation Immediate’ and ‘Immediate’. The use of these gradings is regulated by the rules issued by the Directorate General of Posts and Telegraphs. Telegrams, other than cipher and code telegrams, should normally be followed by post copies.

TELEX MESSAGE – In urgent and important matters, departments having telex facilities may send a telex message instead of a telegram in communicating with out-station parties.

EXPRESS LETTER – It is used in communicating with out-station parties in matters warranting urgent attention at the receiving end but not justifying the

125 expense of a telegram. It is worded exactly like a telegram but transmitted through a post office instead of a telegraph office.

OFFICE ORDER – It is normally used for issuing instructions meant for internal administration, e.g. grant of regular leave, distribution of work among officers and sections.

ORDER – It is generally used for issuing certain types of financial sanctions and for communicating government orders in disciplinary cases, etc., to the officials concerned.

NOTIFICATION – This form is mostly used in notifying the promulgation of statutory rules and orders, appointments and promotions of gazetted officers, etc., through publications in the Gazette of India.

RESOLUTION – This form of communication is used for making public announcement of decisions of government in important matters of policy e.g. the policy of industrial licensing, appointment of committees or commissions of enquiry. Resolutions are also usually published in the Gazette of India.

PRESS COMMUNIQUE/NOTE – This form is used when it is proposed to give wide publicity to a decision of government. A press communiqué is more formal in character than a press note and is expected to be reproduced intact by the press. A press note, on the other hand, is intended to serve as a hand-out to the press which may edit, compress or enlarge it, as deemed fit.

ENDORSEMENT – This form is used when a paper has to be returned in original or its copy is sent to another department or office, for information or action. It is also used when a copy of a communication is proposed to be forwarded to parties other than the one to which it is addressed. Normally this form will not be used in communicating copies to state governments. The appropriate form for such communication should be a letter.

TELEPHONIC COMMUNICATIONS – Appropriate use of the medium of telephone may be made by departments for intra and inter-departmental consultation and for communication of information between parties situated locally. In matters of urgency, departments may communicate with out station parties also over the telephone. Telephonic communications, wherever necessary, may be followed by written communications by way of confirmation.

126 CORRESPONDENCE WITH ATTACHED AND SUBORDINATE OFFICES

Departments may correspond with attached and subordinate offices under the control of other departments subject to such general instructions as the latter may issue.

In the case of their own attached offices and subordinate offices placed directly under them, i.e. without the intervention of an attached office, as are located in Delhi/New Delhi-referred to herein as ‘Non-Secretariat Organization (NSO) for convenience – the departments will introduce the Single File System of correspondence.

OFFICE NOTE, DO LETTER AND OTHER CORRESPONDENCE, NOTING & DRAFTING

IMPORTANT GENERAL POINTS : FOR ALL CORRESPONDENCE

 Correspondence should be precise and the issues raised should be well analyzed. Omission of relevant data and mention of irrelevant ones will inevitably lead, to vague replies and unnecessary correspondence. All correspondence between the Controller's Office and the subordinate offices (L.AOs/RAOs, Pay Accounts Office etc.) will be broadly classified under one or other of the following categories:  Requests for facts, or rendition of required documents- These will be dealt with by clerks and Supervision will be limited to speed and accuracy.  Requests for orders, decision or views-These will be dealt with by A.A.O. and above. Clerks will only assist with facts, search of orders and personal experience, if useful.  Important cases--These will be dealt with by the Officer-in- Charge/ACDA in-Charge himself.

 It is of the utmost importance that all correspondence, bills etc., received in a Controller's Office should be dealt with promptly and systematically.  If any special difficulty is encountered, or delay is anticipated in dealing with a particular case, the matter should be promptly brought to the notice Officer/ACDA-in- Charge, Section, if necessary.

127  The analysis of correspondence on these lines will result in speedy disposal of letters and prompt attention at the appropriate levels, and avoid chain-noting i.e. a string of notes right from the clerk onward.  Reminders for outstanding replies to audit objections, correspondence, etc., will be issued on due dales.  Reminders regarding requests for orders or decisions or views will be issued by only by Gazetted Officers who will, in all cases, again review the position and see whether a reminder is still necessary.

 No communication implying dissatisfaction or censure and no letter to the Secretaries to the Ministries, Government of India, or to the Comptroller and Auditor General, or to any other high official, except purely routine correspondence which may be signed 'for Controller' by the Accounts Officer/Senior Accounts Officer/ACDA in-Charge should issue except under the signature of the Controller. When, however, the Controller is away from his Headquarters, such letters may be signed by the next senior officer `for Controller'.  Correspondence even on purely routine matters will not be entered into by Controller with the High Commissioner for U.K, in India or other Heads of foreign Diplomatic Missions in India. Such correspondence should be routed through the C.G.D.A. and the Ministry of Defence (Finance).  Correspondence on other routine matters wilt be routed through the C.G.D.A., Ministry of Defence (Finance) and the Ministry of External Affairs:  Communications involving audit decisions or interpretations of rules, or on other important matters (including cases having disciplinary aspect) on which the Controller's opinion is required, addressed to the CGDA or GOsC, or to any Defence Service authority superior to them, should invariably be issued after approval by the Controller or in his absence by the Addl/Joint Controller and signed by the Group Officer.  Purely routine correspondence and stereotyped returns stated above will be signed under the official designation of the Accounts Officer/Senior Accounts Officer/ACDA in-Charge Section from which the letters of returns emarate.  Jt.CsDA, IDAS Officer and Senior Accounts Officer/ Accounts Officers will sign letters,etc., issued under their own authority as such, and not `for Controllers'.  Signature `for Controller' will only be used when another officer is acting on behalf of the Controller.  In case where the Controller or other officer whose authority for issuing a communication has been obtained, has been consulted, the junior officer

128 who has consulted him should commence his communication with the words "I am directed, etc."  The subject matter of correspondence should invariably be entered at the head of each letter.  A reminder should state the subject and not merely number and date of the letter to which attention is drawn.

 Initials and names in all manuscript documents should be written in block capitals.  Letters should bear the date of despatch and not that of the draft, or the date when copied.  When a reply to letter received is likely to be delayed for want of answers to side references, or for any other reasons, an ad-interim reply should invariably be sent within a week of the receipt.  Information required by Controllers from Service Headquarters for purposes of higher Audit should be obtained through the CGDA.  Official letters should be addressed to officers by their official designation and should not bear any name on the cover, unless, intended for an officer personally.  The numbers and dates of letters, or resolutions of the Government of India, which have not been promulgated to G.Os.C. and Head of Departments, should not be quoted in official correspondence with officers outside the Department. When, however, it is absolutely necessary to refer to such orders, their substance or an extract there from may, if required be furnished

NOTING

GUIDELINES

1. All notes should be concise and to the point. Excessive noting should be avoided. 2. A simple and direct style of writing should always be adopted. Use of complicated and ambiguous language should be avoided. 3. Notes and orders should normally be recorded on note-sheets. 4. Notes should not be recorded on the receipt itself except in very routine matters. 5. Verbatim reproduction of extracts from, or paraphrasing of the P.U.C or of notes of other Ministries recorded on the same file, should be avoided. 6. Wherever a running summary of facts is available on the file, it should be referred to without repeating any part of the facts in the note.

129 7. A note should always be written in a businesslike language. Even if apparent errors or misstatements have to be pointed out or if an opinion expressed therein has to be criticised, care should be taken to couch the observations in courteous and temperate language free from personal remarks. 8. Any remarks recorded by the Branch officer, or other senior officers, on the receipt should first be reproduced while docketing the receipt. 9. When passing orders or making suggestions, an officer should confine his note to the actual points he proposes to make. He should not repeat or reiterate the ground already covered in the previous notes. If he agrees to the line of action suggested in the preceding note, he should merely append his signatures. 10. A self-contained summary of the case should always be put up with every file submitted to a Minister. Such a summary should bring out briefly, but clearly, all the relevant facts, including the views expressed on the subject by other Departments, if any, consulted in the matter, and the point(s) on which the orders of the Minister are sought. 11. When a paper under consideration raises several major points which require detailed examination and respective orders on each point (or group of related points) it will be, noted upon separately in "Sectional" notes. Such sectional notes will each begin with a list of the major point(s) dealt with therein. 12. The dealing hand will append his full signature with date on the left below his note. An officer will append his full signature on the right hand side of the note with his name, designation and the date. 13. A note will be divided into paragraphs of a convenient size. Paragraphs should be serially numbered and may also have brief titles, if necessary.

130 13. AUDIT(INTERNAL & STATUTORY) Pre-audit

Examination of documentation prior to payment of an item is called Pre- audit. The controller is responsible for conducting pre-audits. The Test Audit conducts tests periodically to assure that appropriate pre-audit procedures are being followed by DAD.

Post Audit

Examination of a transaction after its occurrence.

A post-audit determines whether an organization followed the prescribed policies and procedures. The test may be to verify if paid invoices have necessary documentation and approvals. This test verifies internal control procedures and work performed by clerks.

Types of Audit

In so far as the Defence Services receipts and expenditure is concerned the audit conducted can be classified into three categories:

1) Statutory Audit 2) Appropriation Audit and 3) Internal Audit.

Statutory Audit & Internal Audit:

Audit

Statutory Audit Internal Audit

131 Conducted by DGofA, DS Exercised by DAD

On behalf of C&AG On behalf of Secretary

Defence (Finance)

Statutory Audit

 Compliance of the legal requirement.  Auditors have to comment on the true and fair view of the financial statements of the entity.  Statutory auditor is basically responsible for reporting on mistakes, errors which they find during the course of audit.

Internal Audit

 is an independent, objective assurance and consulting activity designed to add value and improve an organization's operations.  It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes.

Internal Audit differs fundamentally from statutory audit. In Internal Audit, the audit is conducted by an internal auditor or someone within the organization. The audit conducted by the Defence Accounts Department on the Defense Services Receipts and Expenditure is an internal audit. The audit of all expenditure debitable to Defence Services Estimates is conducted by the Controllers of Defence Accounts either centrally in their own offices or locally through the agency of the Local Audit Officers.

Statutory Audit of the accounts and financial transactions of Defence Services

is carried out by the Director General of Audit, Defence Services, who is assisted by Principal Directors/Directors/Jt.Directors/Deputy and Assistant Directors.

132 The Statutory audit of Defence Services expenditure is only a test audit, which is conducted by these officers to such extent and in such manner as may be directed by the Comptroller and Auditor General.

Role of Director General of Audit, Defence Services

 Audits all sanctions of the GOI in the Ministry of Defence and the Ministry of Defence (Finance).  Scrutinizes all Codes and Regulations issued for the use and guidance of the DAD  Prepares annually a Report on the Appropriation Accounts of the Defence Services  Conducts audit in Controllers offices to see that the accounts of the Defence Services, as included in the Combined Finance and Revenue Accounts, are a correct presentation of facts and represent money that has really been spent in the manner in which it is shown to have been spent.

Audit of Cantonment Funds Accounts

 Conducted by the DAD  Cantonment Boards pay audit fees to the DAD.  Not subject to Test Audit by the DGofA (DS)

Addressing of correspondence on questions of interpretation of rules, procedure, higher audit and financial advice

 Controllers should not address Services Hqrs. Or the Ministry of Defence (Finance) direct.  Such questions should always be referred by them to the CGDA

Exception: Pure Audit Reports which only state facts and the actual audit position as understood with reference to extant orders and decisions should however be rendered direct to Services Headquarters.

Where a matter pertains to more than One Controller

The initiating Controller should himself make references to the other Controllers to ascertain the procedure and views prevailing in their offices and

133 state the same in his reference to the CGDA to enable a quick decision being taken.

Primary function of audit:

is to verify the accuracy and completeness of accounts to secure that all receipts are brought to account under the proper head, that all expenditure and disbursements are authorized, vouched and correctly classified and that the final account represents a complete and true statement of the financial transactions it purports to exhibit.

Distinction between Auditorial and Administrative Functions:

Function of the Government: to make Financial Rules and Orders

Function of the DAD : responsible for making payments by applying

these rules and orders.

It is not the function of audit to prescribe what such rules and orders shall be or to interfere with their Administrative application.

Audit by the DAD is conducted with reference to

- the rules laid down in Audit Code - Financial and other Regulations for the Defence Services - Other orders issued by Govt. and other CFAs from time to time. The standards of financial propriety enunciated in para 39 of this code are the basic rules on which all audit is conducted as regards propriety of expenditure.

In the course of Audit, Audit is entitled to make relevant queries and observations and to call for such vouchers, statements, returns and explanation in relation to them as it may consider necessary in the interest of proper discharge of its duties.

All queries and observations should be couched in language which is courteous and impersonal.

134 Audit should not make independent enquiries from the personnel of the Defence Services.

Such action would amount to an encroachment on the functions of the administrative authorities

Audit should confine itself to calling upon the information/required documents from the Administrative authorities.

Audit Responsibility of Controllers:

A CDA is responsible through the CGDA to the Secretary (Defence/Finance) and for the audit of the portion of the receipts and expenditure of Defence Services that is entrusted to him.

Audit of accounts not falling within the sphere of duties of CDA:

Sanction of CGDA is required except the audit of Regimental Funds of units and formations.

Communication of Sanctions and orders:

Sanctions and orders issued by GOI and various Defence Organizations with the concurrence of the MOD (Finance) will be communicated - Direct to the CDAs

Sanctions and orders issued by authorities lower than the GOI except those issued by Chiefs of Services will also be communicated - Direct to the CDAs

Sanctions and orders issued by the MOD in their capacity as local Government will be communicated direct to the CGDA by the MOD and will be subjected to audit by Controllers.

Conveying Sanctions:

Copies of Government sanctions which are intended for communication to the CDAs, who have to act upon the sanction, will be signed in ink by the sanctioning authority.

Copies endorsed to other Controllers may bear cyclostyled signatures.

135

Audit of Sanctions and Orders:

Audit of GOI Sanctions - Conducted by the

Director General of Audit (DS)

Scrutiny of all Codes, Regulations - and Standing Orders issued by the GOI

( No further audit/scrutiny by CGDA/CDAs)

Audit of sanctions issued by the - conducted by the CDAs concerned authorities lower than the GOI

Audit must be carried out before audit is conducted on the transactions arising from such sanctions and orders.

Financial concurrence does not connote an audit of the sanctions.

All sanctions accorded by the Defence Hqrs. should be audited by Controllers with reference to the orders governing the sanction, even though the sanctions indicate that the same were concurred in by the Ministry of Defence (Finance).

Expenditure of Public Money not covered by any Regulations or Orders:

Requires the sanction of the GOI.

Classification of Sanctions and Orders:

The sanctions and orders affecting financial transactions my be broadly divided into three classes:-

1) Rules and general orders;

136 2) Grants and appropriations; and 3) Sanctions to expenditure.

Scrutiny of Rules and Orders:

All rules and orders should be scrutinized to see that

i) They are consistent with the essential requirements of audit and accounts. ii) They do not conflict with the orders of, or rules made by any higher authority. iii) The issuing authority possesses the necessary rule making power.

Disregard of Standards of financial propriety:

When the CDA considers that any rule or order has infringed any one of the canons of financial propriety,

 He should convey his opinion to the administrative authority concerned for necessary action or  He may report to the next higher authority, if considered necessa 

Utmost care and attention should be devoted to the audit of sanctions to expenditure:

Utmost care and attention should be devoted to the work connected with the audit of sanctions to expenditure, as once a sanction has been accepted in audit, expenditure may have to be passed against it for a length of time.

Audit of Sanctions to Expenditure:

One of the important functions of audit in relation to the audit of expenditure is to see that the

1) Item of expenditure is covered by the sanction of the authority competent to sanction it. 2) The sanction is definite and needs no reference either to the sanctioning authority or to any higher authority

137 3) Items are sanctioned in installments to avoid sanction by a higher authority. 4) If any one item of a scheme requires the sanction of a higher authority that item should not be given effect to before sanction to it is obtained. 5) An order sanctioning expenditure contains indication of the amount or limit of sanction. 6) Specimen signatures of the officers who are authorized to sign the Government Sanctions involving Defence expenditure tallies. Audit against Propriety:

It is an essential function of audit to bring to light not only cases of clear irregularity but also every matter which, in its judgment, appears to involve improper expenditure or waste of public money or stores, even though the accounts themselves may be in order and no obvious irregularity has occurred.

It is thus not sufficient to see that sundry rules or orders of competent authority have been observed.

It is of equal importance to see that the broad principles of orthodox finance are borne in mind not only by disbursing officers but also by sanctioning authorities.

Its objective is to support a reasonably high standard of public financial morality, of sound financial administration and devotion to the financial interests of Government.

Audit Officers in the performance of their duties should in any case, apply the following general principles which are recognized as standards (or cannons) of financial propriety.

1. Every Officer incurring or authorizing expenditure from public moneys should be guided by high standards of financial propriety. 2. Every officer is expected to exercise the same vigilance in respect of expenditure incurred from public moneys as a person of ordinary prudence would exercise in respect of expenditure of his own money. 3. the expenditure should not be prima facie more than the occasion demands.

138 4. no authority should exercise it powers of sanctioning expenditure to pass an order which will be directly or indirectly to its own advantage. 5. Expenditure from public moneys should not be incurred for the benefit of a particular person or section of the people, unless i. a claim for the amount could be enforced in a Court of Law, or ii. the expenditure is in pursuance of a recognized policy or custom. 6. the amount of allowances, granted to meet expenditure of a particular type, should be so regulated that the allowances are not on the whole a source of profit to the recipients. 7. Whenever called for, the concerned authority must place on record in precise terms the considerations which weighed with it while taking the procurement decision.

Extent of Audit of Expenditure:

The extent to which the various classes of bills and accounts will be audited is shown in the Annexure enclosed at the end. Bills and accounts not enumerated in the Annexure will be audited in full.

Quantum of Audit – Increase/Decrease:

May be increased under the personal orders of the Controller to the extent he may order at his discretion where the state of accounts is unsatisfactory and warrants more detailed audit.

If a Controller desires to relax audit temporarily in a matter which concerns his own office or his subordinate offices, he should invariably refer the cases to CGDA for obtaining prior concurrence.

The extent of Audit in respect of Store and Public Fund accounts is prescribed in the respective Local Audit Manuals.

The extent of audit in r/o MES accounts is prescribed in the MES Accounts Manual and MESLAM.

Audit of Expenditure: Conducted by the CDAs

i) Either centrally in their own offices or ii) Locally through the agency of LAOs.

139

Main Objects of Audit of Expenditure:

The main objects of audit of expenditure are to ensure:

i) provision of funds duly authorized by the competent authority ii) in accordance with the sanction properly accorded iii) incurred by an officer competent to incur iv) claims are made in accordance with rules and in proper form v) proper estimate framed and approved by competent authority vi) expenditure sanctioned for a limited period is not admitted in audit beyond that period without further sanction vii) payment is made to the proper person viii) payment is acknowledged and recorded to avoid a second claim ix) charge is correctly classified x) recovery if any is watched xi) in case of stores, accounted for in the prescribed accounts xii) terms of the contract or other agreement have been adhered to xiii) expenditure does not involve a breach of any of the standards of financial propriety.

Prescribed checks should be observed in spirit

Auditors and others employed on audit duties should not be at liberty to make any relaxations in audit of their own motion. Prescribed checks should be observed in spirit and not in the letter as opposed to the spirit.

Irregular payments:

 Payments in contravention of definite Government Orders are irregular.  Concession should on no account be extended to other classes merely on the basis of analogy or with a view to avoiding an anomaly.  Payments should not be made beyond the scope of the orders.  If a reference is made to higher authorities for clarification, wait for a decision  No payments should be made in anticipation of a favorable decision on the reference.

140

Provisional Payments - Definition:

Payments made in exceptional circumstances in anticipation of the receipt of the sanction of the appropriate authority or of additional allotments of funds to cover the expenditure are known as ‘Provisional Payments’

Provisional Payments:

 Will be watched through a medium of register  Long pending cases should be brought to the notice of higher authorities  The register will be subject to review by CDA/Addl.CDA/Jt.CDA  Made only under the personal orders and discretion of the CDA  CDA can delegate powers to Group Officers on his own responsibility  No provisional payments will be authorized where there is no authority  Where there is a definite legal liability, payment should not be ordinarily withheld, especially in third party cases.  Provisional payments should not be made on an undertaking by the individual concerned that he will refund the amount if required to do so. Exception: Provisional Payment of Pay and Allowances pending receipt of LPC)

Audit of Bills and Vouchers:

The detailed audit of bills and vouchers is conducted to see that:

i) The bills and vouchers are in the prescribed form and are in original ii) They are duly receipted by payees iii) The details work upto the total and the totals are in words as well as in figures iv) There are no erasures v) The alterations are attested by the officer concerned vi) no voucher or order has been signed by the subordinate ‘for’ an officer vii) the bills are signed in ink viii) no bill or voucher signed with a stamp ix) sanctions are certified by the sanctioning officer or by a gazetted officer authorized to sign for him x) that stamps are affixed to all vouchers for sums in excess of Rs.5000/- xi) fund and IT deductions are correctly made

141 xii) the claim is not time barred xiii) completion of prescribed audit registers

Specimen signature

Before admitting a claim, an audit officer must satisfy himself that the signature it bears is genuine. To ensure that specimen copy of the signatures will be maintained.

Amendment and interpretation of rules:

When any defective rule comes to the notice of a Controller in the course of his audit duties

 he will first see whether the rule requires any audit decision.  Then decide the audit point according to the rule as it stands  Refer the matter to the CGDA

Financial advice

Taking initiative by Controllers for reduction of Defence expenditure whenever appears practicable.

Controllers act as an agents or representatives of the Secretary (Defence/Finance) and render suitable Financial Advice to the Services authorities on reduction of Defence Expenditure, whenever required and appears practicable.

If a working of a rule or a system leads to abuse or extravagance, the Controllers should report the matter to the CGDA, who will, if deemed fit, bring the matter to the notice of Ministry of Defence (Finance).

Financial advice tendered to the Defence Services authorities can be divided into two portions namely:

1) Responding financial advice 2) Original financial advice

Responding financial advice

 Advice on definite points referred to Controllers

142  Advice as the result of investigations into facts which are normally accepted on the statement of commanding and administrative officers

Original financial advice

 Advising the administration of any method by which equal efficiency can be obtained with less expenditure

Audit against provisions of Funds

Appropriation Act:

After the ‘Demands for Grants’ have been voted by the Parliament, a bill is introduced to provide for the appropriation out of the Consolidated Fund of India of all moneys required to meet those grants. No money can be withdrawn from the Consolidated Fund until this bill is passed. The bill when passed becomes the Appropriation Act.

Unspent balance lapses

Each grant authorized in the Appropriation Act is intended to cover all the charges including the liabilities of past years to be paid during a financial year or to be adjusted in the accounts of that year. It is operative until the close of that year.

Any unspent balance at the end of the year lapses and is not available for utilization in the following year.

The Financial Year closes on 31st March. After that date all actual transactions are treated as pertaining to the following year but for bonafide transfer entries or book adjustments, of transactions pertaining to the accounts of the year closed, which are permissible or may be made for some months after 31st March until the accounts for the year are finally closed.

No appropriation is needed in respect of recoveries of expenditure which are treated as receipts, both initially and finally, and are not required by any rule in any authorized account code to be taken in reduction of charges against grants for expenditure.

143 Appropriation Audit

Means audit of orders of allotment of funds, re-appropriations and expenditure against allotments.

The appropriation Audit is done both by the Statutory audit (external audit) and the Internal audit. CDAs are required to exercise appropriation audit, only in respect of the expenditure compilable to Locally Controlled Heads. No audit is required to be conducted by the DAD on the expenditure pertaining to CCH.

LCH: Locally Controlled Heads

CCH: Centrally Controlled Heads

Appropriation Audit is conducted in two stages:

i) sanction audit: i.e. audit of orders of allotment of funds, re- appropriations ii) expenditure audit: i.e. audit of expenditure against allotments.

The audit of orders of allotment of funds, re-appropriations consists in seeing:

a) that the order has not the effect of increasing the amount of the appropriation at the disposal of the controlling authority, without the sanction of the competent authority: b) that the amount appropriated is available under the unit from which it is allotted; c) that the order is issued by the competent authority and is a legitimate charge against the allotment d) that the re-appropriation has been authorized only within the appropriation of that year.

In conducting the audit of expenditure against allotments, the following points should be carefully observed by Controllers:

a) if any specific appropriation has been made for a particular object of expenditure, all expenditure on it will be audited against such appropriation

144 b) if a lump sum appropriation is made for a group of items of expenditure, the total expenditure thereon will be audited against the lump sum appropriation.

Audit of Receipts and Recoveries

The audit of receipts consists in seeing that

i) All sums due to Government are promptly credited and brought to account. ii) No debt due to Government should be left outstanding on the books without due and sufficient reason. iii) Whenever any item appear to be irrecoverable, orders for its adjustment should be demanded. iv) Unless permitted by any rule in an authorized code, no sums may be credited to Government by debit to any suspense heads; credit must follow, and not precede, actual realization. v) If any scale or periodicity of recoveries prescribed, it will be the duty of Audit to ensure that there is no deviation without proper authority from such scale or periodicity.

A record of all sums due to Government will be maintained by means of demand or other appropriate registers.

Recoveries of advances made in India

As a general rule, no debt due to Government should be left outstanding on the books without due and sufficient reason. The audit office should exercise constant and watchful care over such outstanding and should fully review them at least once a year. Whenever any item appear to be irrecoverable, orders for its adjustment should be demanded.

Pay & Allowances: P&A advanced under proper sanction are audited in the same way as pay and allowances issued on due date.

Advances: Advances made to individuals will be entered in the Demand Registers and will watch their recovery there from. If the advances are paid to individuals in another audit circle the advances will be debited, through the Defence Exchange Accounts, to the Audit Officer concerned for further

145 recovery action. Full conditions and particulars of the advance will be stated both in the Last Pay Certificate and the Exchange Accounts.

Audit of pay bills:

i) Check the title of the Government Servant to the pay drawn by or for him ii) Verify that they receive the remuneration to which they are entitled. iii) Compare with those admitted in the last audited bill and variations are supported by the necessary authority. iv) In case of first pay, check whether LPC or Appointment Order is supported with the bill v) The allowances have been claimed correctly and supported by the requisite certificates wherever necessary vi) The demands have been correctly posted vii) The payment made is prominently recorded in the last charge to avoid a second claim on the same account. viii) The period of duty, suspension or leave, is correctly recorded as a check on future claims to leave and pension ix) Leave has been granted by the competent authority in case of the officer is on leave.

Audit of TA Claims

In conducting the audit of TA claims, it is to be seen that:

 the claims have been submitted on the prescribed form  The claims are countersigned by the Controlling Officers  Sanction of the prescribed authority has been accorded for the move.  That the journey was performed as expeditiously as possible and that no bill has been submitted for it before.  The fares charged agrees with the tariffs of respective Govt. transporters  The distances for which mileage has been claimed are correct.  No allowances have been claimed which are not covered by regulations or orders  Any advance of traveling allowance taken in respect of the particular journey for which the claim is preferred has been brought to account in the claim

146  Necessary deductions are made in respect of State Hospitality received and transport facilities enjoyed if any  The details noted in the demand cum audit register maintained for the purpose

Audit of Contingent and Miscellaneous Charges

It is the duty of the executive authorities to see that

 the charges drawn in a contingent bill are of obvious necessity and are at fair and reasonable rates  previous sanction for any item requiring such sanction is attached  all requisite vouchers are received and are in order  the calculations are correct and that where applicable the expenditure has not exceeded and not likely to be exceeded the allotment made for the purpose.  If expenditure be progressing too rapidly, it is their responsibility to regulate and to take steps to obtain an additional allotment.

Fundamental principles for the guidance of authorities authorized to enter into contracts or agreements involving expenditure from public funds

 The terms of a contract must be precise and definite, and there must be no room for ambiguity or misconstruction therein.  As far as possible, legal and financial advice should be taken in the drafting of contracts and before they are finally entered into.  Standard forms of contracts should be adopted wherever possible, the terms to be subject to adequate prior scrutiny.  The terms of a contract once entered into should not be materially varied without the previous consent of the competent financial authority to enter into contract as so varied.  No contract involving an uncertain or indefinite liability or any condition of an unusual character should be entered into without the previous consent of the competent financial authority.

147  Whenever practicable and advantageous, contracts should be placed only after tenders have been openly invited, and in cases where the lowest tender is not accepted, reasons should be recorded.  In selecting the tender to be accepted, the financial status of the individual and firms tendering must be taken into consideration in addition to all other relevant factors.  Even in cases where a formal written contract is not made, no order for supplies, etc. should be placed without at least a written agreement as to price.  When a contract is likely to exceed for a period of more than 5 years, it should, wherever feasible, include a provision for an unconditional power of revocation or cancellation by Government at any time, after the expiry of six months’ notice to that effect.

 The Controllers of Defence Accounts have power to examine contracts, and to bring to the notice of the proper authority any cases where high tenders have been accepted, or where other irregularities in procedure have come to light.

Important aspects of Contracts:

 Deviations from contracts require authority not inferior to that required for the original contract.  Contract rates are not increased without the sanction of the authority next higher to the once which sanctioned the contract and  no payments outside the strict terms of the contract are made without the consent of the competent financial authority.

Audit of Contracts:

As soon as a contract is concluded and the security deposit is received from the contractor, the original copy of the contract together with a duplicate copy (complete with all forms), the comparative statement of tenders, and the security deposit receipt is passed on to the C.D.A. concerned for post-scrutiny.

On receipt, the Controller will see that;

148  all requirements pointed out at the time of pre-scrutiny (if carried out) have been complied with or a satisfactory reply, acceptable in audit has been furnished  where audit advice regarding the acceptance or otherwise of the recommended tenders has not been accepted, adequate reasons are recorded in the comparative statement under the signature of the competent authority  the lowest tender has been accepted as a rule or where a higher tender has been accepted, adequate reasons are recorded in the statement.  The contract has not been made by or on behalf of a minor  The contract has been sanctioned by the competent authority and has been concluded with the firm actually admitted to the register of approved contractors  The security deposit in the appropriate form and of correct amount has been lodged within the period stipulated in the contract and that in the even of default penalties leviable under the conditions of the contract have been enforced  All the conditions and requirements printed on the contract form have been complied with  If the contract has been entered into with a firm, each one of the partners has signed all the documents constituting the contract and if any partner be absent these forms are signed by his duly constituted attorney. In the latter case the original power of attorney duly registered in a court of law will be verified and an attested copy retained for audit purposes  The specimen signature of the contractor or his duly constituted attorney is received and recorded with duplicate copy of the contract

Expenditure on Supplies

Audit of Bills:

In audit of Bills for Supplies, it will be seen that

 the purchase of the stores has been sanctioned by the competent authority  all purchases of stores are made in accordance with the instructions laid down in rule 128, FR Part I - VOL.I  no purchase which requires the sanction of a superior financial authority shall be sanctioned by an inferior authority in installments

149  the arithmetical calculations are correct  The bills are supported by receipt vouchers or receipted inspection notes or supply orders  Where contracts have been entered into, the rates charged for agree with those in the contract agreements. Etc.

Functions of Field Cashiers

The appointments of Field Cashiers are held by officers of the Defence Services and the Formation Commanders are responsible for ensuring that the Field Cashiers carry out their duties in accordance with the regulations and the accounting instructions issued from time to time by the C.D.A. (Officers).

The Functions of Field Cashiers are:

 To keep an adequate supply of funds under arrangement made with the CDA (O)  To supply funds in bulk to authorized Field Imprest Holders on presentation by them of requisitions on I.A.F.F.-1036  To pay advances of pay to individual officers on presentation of personal cheques, in IAFF-1034, upto a maximum monthly limit endorsed on the cheque books  To make such other payments as may be specifically authorized by the CDA (O), or as directed by the Division/Formation Commander in exceptional cases.  To accept and to bring to account forthwith all sums tendered by any member of Defence Services (i.e. officer, soldier or civilian) in settlement of public claims for clothing etc. issued on payment or as being due to Government on any other account and  To accept and to bring to account in his Cash Book, sums handed in by Field Post Offices for credit to the postal department.

The funds required by Field Cashiers, who have been appointed by competent authority are provided by CDA (O) by means of Cash Assignments in their favour on the nearest Civil Treasury or branch of the SBI.

The Field Cashiers are required to render daily to CDA (O) a cash account, in IAFF-987, duly supported by vouchers, in which all receipts and payments during the day are brought to account. CDA (Officers) will watch for the receipt of daily cash accounts from the various Field Cashiers in whose favour cash assignments have been arranged by his office.

150 Audit of Field Casher’s Accounts

On receipt of the daily cash accounts the following points should be seen that:

i) the account has been rendered in the appropriate form (IAFF-987) and is complete in all respects. ii) The opening cash balance agrees with the closing cash balance in the previous day’s cash account iii) The funds entrusted to the Field Cashier are not utilized for unauthorized purposes (e.g. cashing of private cheques, etc. iv) The amounts received and disbursed have been correctly accounted for and are supported by the relevant vouchers v) The amounts accounted for as receipts agree with the amounts drawn from the assignment as intimated by the Treasury/SBI direct, as and when drawals are made; vi) The closing cash balance is correct and does not exceed the maximum limit fixed by the Divisional Commander; and vii) That in the case of final account, the cash balance is paid into the Treasury and the final account is supported by the Treasury Receipt.

Imprest Holder’s Accounts

The following special points will be seen in conducting the audit of imprest accounts:

 The account has been signed by the official Imprest Holder.  All demands received from Regional Controllers, etc. for advances paid to imprest Holders have been accounted for correctly.  The closing balance (excluding the postal collections if any, if authorized as per clause 5 below) is within the monetary limit prescribed.  Cash in bank and cash in hand have been exhibited separately.  Sanction of the Force/Formation Commander exists for crediting postal collections in Imprest and also for the payments of advance of pay to officers out of Imprest, at stations where banking facilities do not exist.  No imprest money has been lent to another Fund or Imprest Holder without the specific authority of the C.D.A.(ORs) nor are loans obtained from any unauthorized source in replenishment of Imprest to meet urgent demands.  Civilians at peace stations are not paid through Imprests.

151  Whenever there is any change of the Imprest Holders a certificate of Imprest holders change is received with the Imprest account.  The following items are not met out of Imprest: Advances of traveling allowances less than Rs.50/0

Local purchase of stationery

Bulk local purchase of stores and supplies unless specifically authorized. (If this charge is met out of the Imprest, it should be seen that the Imprest Account is recouped with the amount.)

Personal allowances

 A note of the surprise checks (occasional at least once in three months) of cash balances in hand with the Imprest Holder is made in the Imprest Account by the officer who conducted the check.

Major Financial Accounting Irregularities (MFAI)

The report is rendered quarterly by the Controllers in the matters relating to the units and formations for the Command as a whole for the quarter ending June, September, December and March every year by 20tj of the month following the quarter.

FINANCIAL IRREGULARITIES COMING TO THE NOTICE OF CONTROLLERS DURING AUDIT PROCESS

(i) Irregular or non maintenance of account. (ii) Cases involving financial irregularities or loss above 5 lakhs (iii) Cases which disclose loopholes fraud, defalcation etc may be included at the discretion of Controllers. (iv) Cases of serious irregularities which cannot be translated into financial terms but Controllers feel that it should be brought to the notice of Army Commanders/Air HQrs/Navy HQrs/DGOF and administrative heads.

Apart from financial irregularities special attentions will be paid to the following items:-

(i) Utilisation of plant and machinery for the purpose for which it was purchased and installed.

152 (ii) Identification of slow and non-moving items of stores in Depots/Stores holding formations. (iii) Deterioration condition of stores due to unduly long, inadequate storage. (iv) Defective planning and implementation of projects involving significant investments highlighting major deviations from original time and cost targets

MFAI reports will be rendered in two parts:-

Part I –Fresh irregularities

Part II- Irregularities reported previously but still remaining outstanding.

Two copies of MFAI reports will be forwarded as under:-

Units Report addressed to Copy forwarded to Army Units/Formations GOC-in-C Command (By Name) CGDA/Director/Jt.Director Air Force Command HQrs of Air Dy.Director/Asst.Director Force of Audit (Defence Navy Command HQrs of Services) Navy DGOF,DGNCC,DG Departmental Heads R&D,DGQA, Border Roads.

Other salient points:-

 Report to be signed by CDA  In the absence of CDA Addl CDA/Jt.CDA  The narration of each item should be brief lucid.  Bring out nature of irregularity, the amount involved.

Other points to be explicitly mentioned:-

Whether the irregularity has come to the light during percentage audit/or process check of selected item,or whether it is case of erroneous certification by executive.

153 The precise point at which and extent to which failure on the Cases which in the personal opinion of Controllers are important of significant as to be reported to MOD/Service HQ/MOD(Finance) will be included in Part II

Internal Audit Reports

Irregularities noticed in Internal Audit are reported to Management through Half Yearly Objection Statement(s)

Half yearly Internal Audit Reports are rendered by CGDA to MOD (Finance)

All outstanding Internal Audit Objections including serious nature of procedural/financial irregularities are reflected in Annual Audit Certificate.

Broad Categories of Internal Audit Reports

Controllers Internal Audit Report is to be drafted and rendered to HQrs. The report is to be rendered half-yearly covering the period upto 31st March and 30th September every year under the following broad categories:-

o Regulatory Audit o Loss of Revenue o Generation of Revenue o Optimal Resource management o Economy Suggestion

Items submitted by the Controllers will be consolidated and submitted to FA (DS) and Defence Secretary by HQrs. Office.

Individual items included in half yearly report are brought to the notice of PSO and heads of organizations for initiating necessary remedial measure.

154 STATUTORY AUDIT

AN INTRODUCTION TO TEST AUDIT CONDUCTED BY C&AG

As per Article 151. (1) of the Constitution he reports of the Comptroller and Auditor- General of India relating to the accounts of the Union shall be submitted to the President, who shall cause them to be laid before each House of Parliament.

Budget is made available to the executives in Government of India by the PARLIAMENT. Executive spends budget duly guided by set of rules and regulations. Executive is also guided by his Internal Auditors and Integrated Financial Advisors. The audit findings of C&AG will be submitted to PARLIAMENT through PAC.

During the course of test audit, audit findings are communicated during discussion at the end of an audit exercise and followed up in writing through Local Test Audit Reports/Statement of Cases

The response from the auditee is considered and results in either settlement of the audit observation or referral to the next audit cycle for compliance. Some of the more serious irregularities are processed for inclusion in the audit reports which are submitted to the President of India under Article 151 of the Constitution of India, for laying them before each House of Parliament.

REPORT OF THE C&AG, UNION GOVERNMENT, DEFENCE SERVICES

Introduction

The results of test audit conducted by DGADS and internal audit conducted by DAD where DGADS thinks it is necessary to include are included by DGADS in Annual Report entitled” Report of the Comptroller and Auditor General of India for the year… …. Union Government (Defence Services)

The report contains in general

 Regularity and propriety of expenditure  Financial administration  Important of typical financial irregularities and losses  Any neglect of recommendation of PAC accepted by Government.

Purpose of Report

155 The report is designed to serve a double purpose.

a) To the Government of India it will show the extent to which the Defence Services are complying with its rules and orders. b) To the Parliament through PAC it will reveal how far the Government has compiled its expressed views .i.e. moneys placed at the disposal of Government were regularly and properly spent.

The report also contains reports of important cases of irregularities detected in Internal Audit by DAD, sanctions of Government of India and the comments of Principal Director of Audit, Indian Accounts in United Kingdom.

Inclusion of Draft Paragraphs

The draft paragraphs proposed to be included in the Report of the C&AG are included after verification of facts from Controllers concerned.

After DGADS has accepted the draft paragraphs he will send three copies to MOD and one copy to the branch concerned of Service HQrs. to collect material for quick examination and disposal of the draft paragraphs.

Draft Para will be referred to the concerned branch at Service HQ by MOD before according final concurrence. Concerned branch will return draft para to Ministry through their DFA concerned.

Draft paras by inclusion in the report of the C&AG, Union Government, Defence Services will ultimately come before PAC.

In order to ensure office of the CGDA get all necessary information in time and is fully posted with complete details of the case, Controllers should endorse to the CGDA a copy of each draft para after it has been concurred by them and returned to the Director Defence Services or appropriate level officers in the office of DADS.

The advance copy of the draft para should be accompanied by the following:

 A brief and self explanatory note on the circumstances of the case.  Whether irregularity discovered in internal audit or test audit.  If not detected by DAD brief reasons  If detected in internal audit whether it was reported to administrative authorities and if so the result.

156  A gist of the discussion held with the administrative authorities on draft para

Controller will examine draft para with a view to ascertain whether failure can be attributed to DAD at every stage which has resulted in draft para. Necessary action will be taken by Controllers.

The orders passed by the Government of India on the recommendation of PAC affecting the Defence Services will be communicated to the Controllers by the CGDA with suitable supplementary instructions considered necessary.

157 14. ACCOUNTS

Transactions

Accounts are "Statements of facts relating to money or things having money value.” The `facts' that are incorporated in accounting records are described as transactions.

Accounting

A mere chronological listing of monetary pecuniary transactions in the form of Cash Account does not bring out the significance of the transactions and their aggregate effects. From such a cash account, a man cannot tell, without going through every item, how he stands in relation to his various customers, and whether his business is profitable or not. It becomes necessary that his transactions should also be classified under various heads, as for example the names of various customers dealt with or of various articles dealt in; and that the results of the transactions under these heads should be arranged in such a form as to show clearly not merely the significance of each separate transaction but also the combined effect of any desired series of transactions. The process through which these ends are effected is called accounting.

Initial Accounts & Compilation

The initial accounts of Government transactions in India are prepared by the authorities through whom the transactions occur, such as treasuries, the various departmental offices, pay and accounts organizations, etc. From these initial accounts, the Indian Audit and Accounts Department as well as the Central Accounting Organizations of the Union Government compile, under different heads prescribed for Government accounts, and bring out, monthly and annually, the combined result of all the transactions which occur during that period. From the accounts so compiled by the Indian Audit and Accounts Department and other agencies, the combined Finance and Revenue Accounts of the Union and the State Governments are prepared by the Comptroller and Auditor-General. These accounts incorporate the results of the total Government transactions arising both in and outside India.

Broad System of Government Accounting

The accounts of the Government of India are kept in three parts as below:-

158  Part I - Consolidated fund of India.  Part II - Contingency fund of India.  Part III - Public Account of India. Consolidated Fund of India (Part I) is the most important part of the Government accounts. In fact it is what is normally referred as the public exchequer. In it all the revenues received by the central government on account of taxes, loans raised by government and the expenditure incurred by the Government are accounted. Within the Consolidated fund of India account there are two main divisions viz:-

1. Revenue - consisting of sections for ‘Receipt Heads (Revenue Account)’ and ‘Expenditure Heads (Revenue Account). This division deals with the proceeds of taxation and other receipts classed as revenue and the expenditure met there from. 2. Capital, Public Debt, Loans etc.- consisting of sections for ‘Receipt Heads (Capital Account)’, ‘Expenditure Heads (Capital Account) and Public debt (Loans and Advances etc.).

The section ‘Receipt Head’ of Capital Account deals with receipts of a Capital nature which cannot be applied to set off a Capital Expenditure.

The section ‘Expenditure Head’ of Capital Account deals with expenditure, met usually from borrowed funds, with the object of either of increasing concrete assets of a material and permanent character or of reducing recurring liabilities. It also includes receipts of a capital nature that are intended to set off a Capital Expenditure.

The section ‘Public Debt’ and ‘Loans and Advances etc.’ comprise loans raised and their repayments by Government such as ‘Internal Debt’, ‘External Debt’ of the Central Government and loans & advances made (and their recoveries) by Government. The sections also include certain special types of heads for transactions relating to ‘Transfers from the Consolidated Fund’ and inter-state settlement. As per the provisions of Article 112 of the Indian Constitution, the President "shall in respect of every financial year cause to be laid before both the Houses of Parliament a statement of the estimated receipts and expenditure of the Government of India for that year" in the Consolidated Fund of India. It is also referred to as the “annual financial statement" or in the common parlance as the Annual Budget. The Parliamentary approval of the budget is the basis of the Ministries of the Government of India incurring the expenditure in the

159 ensuing year. The estimates of expenditure embodied in the annual financial statement shows separately:-

- The sums required to meet expenditure described by this Constitution as expenditure 'charged' upon Consolidated Fund of India; and

- The sums required for meeting other expenditure proposed to be made from the Consolidated Fund of India, and shall distinguish expenditure on revenue account from other expenditure.

While most of the expenditure is voted by Parliament, there are certain expenditure which are not subject to vote and are 'charged' on the Consolidated Fund of India. This expenditure is also called 'Charged Expenditure'.

The following are the expenditure charged on the Consolidated Fund of India –

(i) The emoluments and allowances of the President and other expenditure relating to his office. (ii) The salaries and allowances of the Chairman and the Deputy Chairman of the Council of States and the Speaker and the Deputy Speaker of the House of the People; (iii) Debt charges for which the Government of India is liable including interest, sinking fund charges and redemption charges, and other expenditure relating to the raising of Loans and the service and redemption of debt; (iv) the salaries, allowances and pensions payable to or in respect of Judges of the Supreme Court; (v) The pensions payable to or in respect of Judges of the Federal Court; (vi) The pensions payable to or in respect of Judges of any High Court that exercises jurisdiction in relation to any area included in the territory of India. (vii) The salary, allowances and pension payable to or in respect of the Comptroller and Auditor-General Of India.

(viii) Any sums required to satisfy any judgment, decree or award of any court or arbitral tribunal; (ix) Any other expenditure declared by the Constitution or Parliament by Law to be so charged.

Contingency fund of India (Part II) has been created to cater for meeting unforeseen expenditure, pending authorization by the Parliament. This fund is

160 placed at the disposal of the President of India. The procedure involved in custody of the payment of money in the contingency fund as well as for withdrawal from it, is regulated by laws made by the Parliament from time to time. There may be payments pertaining to advances or to "Charged expenditure" out of the contingency fund.

Advance will be made from Contingency Fund, when a need arises to incur unforeseen expenditure in excess of the sanctioned grant or appropriation or on a ‘new service’ not provided in the budget and there is no sufficient time for the voting of the Supplementary Demand. It is made pending the sanction of necessary appropriation bill from the Parliament under the provisions of Article 267(I) of the Constitution.

Payments for Charged Expenditure:- There may be instances where the Charged expenditure is met out of the contingency fund. Expenditure met out of advances from the Contingency Fund of India should be recorded under the Major Head ‘Contingency Fund’ with the same details as it would have been recorded if it had been met out of the Consolidated Fund. For this purpose each Major Head of Expenditure under the Consolidated Fund is treated as a Minor Head subordinate to the Major Head ‘Contingency Fund of India’. Payments made out of the advances drawn from the ‘Contingency Fund’ will be debited to the relevant heads of Account specified under Contingency Fund of India. When expenditure initially met out of an advance drawn from the Contingency Fund is recouped to the Fund after passing of the necessary Appropriation Act, the necessary adjustment is carried out by the Accounting authority in whose accounts the transaction originated as soon as the resumption order is received. In cases where payments on account of ‘charged’ expenditure are made out of the anticipatory Budget provision the same will be debited to the relevant Head of account under the ‘Consolidated Fund of India’.

Public Account of India (Part III) constitutes a fund in which money received on behalf of the Central Government is kept and disbursed in accordance with the Laws made from time to time. In this Accounts, the transactions relating of Debt (other than those included in ‘Consolidated Fund of India’ account), Deposits, Advances, Remittances and Suspense shall be recorded. The transactions under Debt, Deposits and Advances in this account are such in respect of which Government incurs a liability to repay the moneys received or has a claim to recover the amounts paid together with the repayments of the former (Debt and Deposits) and the recoveries of the latter (advances). The

161 transactions relating to ‘Remittances’ and ‘Suspense’ in this account will embrace all merely adjusting heads under which shall appear transactions between different accounting circles of Governments of India. The initial debits or credits to these heads will be cleared eventually by corresponding receipts or payments either within the same circle of account or in another circle.

CLASSIFICATION OF ACCOUNTS

Within each of the Divisions/Sections mentioned in the preceding paragraphs i.e the Consolidated fund, the Contingency fund and the Public Account, the transactions are grouped into Sectors, under which specific functions or services are grouped. The Sectors are sub-divided into Major Heads of Account. In some cases, the sectors are, in addition, sub-divided into sub- sectors before division into Major Heads of Accounts. The sectors shall be distinguished by a series of letter of the Alphabet separately for the ‘Revenue Receipt’ section, the ‘Revenue Expenditure’ section and for the sectors included in the remaining Sections/Divisions.

Below the sectors, the accounting classification consists of the major heads. The major heads have been allotted a four-digit code, the first digit indicating whether the Major head is Receipt head or a Revenue expenditure head or a Capital expenditure head or Loan head. If the first digit is ‘0’ or ‘1’ the head of account will represent Revenue receipt, ‘2’ or ‘3’ will represent Revenue expenditure, ‘4’ or ‘5’ Capital expenditure and ‘6’ or ‘7’ Loan head. Major heads starting with ‘8’ represent transactions pertaining to the Contingency Fund and Public Account.

Under the scheme of accounting codification, the ‘Receipt’ Major heads are assigned the block of consecutive serial nos. 0001 to 1999 and ‘Expenditure’ Major heads on Revenue accounts from 2001 to 3999. The only Capital Receipt Major head has been given the code number 4000. Expenditure Major head on Capital account are assigned the code nos. from 4001 to 5999 while Major heads under ‘Public Debt’ Loans and Advances, Inter-state settlement and transfer to Contingency Fund are assigned code nos. from 6001 to 7999. The only Head for Contingency Fund is given the code no. 8000. The Major heads in the Pubic Account are assigned code nos. from 8001 to 8999. The code numbers relating to Major head in respect of the same function falling under the four sections mentioned above are arranged in such a way that by adding 2000

162 to the concerned code, the Major head applicable for the four sections could be determined.

The major heads of accounts falling within the sectors of the consolidated fund of India generally correspond to functions of Government. The minor heads, which are subordinate to the major heads, identify the programmes undertaken to achieve the objective of the function represented by the major head. A programme may contain of a number of schedules or activities and these generally correspond to sub-head below the minor head represented by the programme. For instance, under the minor head for works, subheads would cater for major works, minor works, special repairs etc. As can be seen, the main unit of classification in accounts is the Major Heads, which is divided into Minor Heads each of which have a number of Sub-heads. The Sub-heads are further divided into ‘Detailed heads’. Some times, Major heads are also divided into Sub Major heads before their further division into Minor Heads. A detailed head, which constitutes the last tier of classification, is termed as an object classification. The detailed heads represent the primary unit for classification and are meant for itemised control over expenditure and indicate the nature of expenditure on a scheme or activity or organisation such as salaries, office expenses etc. There exists a standard list of detailed heads comprising the common items of expenditure in the government which can be uniformly adopted. These can be adopted by all departments and each additional detailed head may be opened to cover specific types of expenditure under different departments. The system of accounting classification in the Government can thus be represented as below:-

SECTOR

MAJOR HEADS

MINOR HEADS

SUB-HEADS

DETAILED HEADS

The Sectors, Major Heads, Minor Heads, Sub-Heads and Detailed Heads together constitute a five tier arrangement of the classification structure of Government Accounts.

RULES REGULATING INTER-DEPARTMENTAL TRANSFERS

163 INTRODUCTORY

The rules in this chapter regulate the conditions under which charges may be made by Defence Services for services rendered or articles supplied to other departments of the Central Government, State Governments and outside bodies, and vice versa.

INTER-DEPARTMENTAL ADJUSTMENTS WITH OTHER DEPARTMENTS OF THE CENTRAL GOVERNMENT

Save as expressly provided in this chapter, a service department shall not make charges against another department of the Central Government for services which fall within the class of duties for which the former department is constituted.

Without prejudice to the general principle contained in para 61, the Defence Services shall, in respect of inter-departmental transactions, charge and be charged for services rendered and supplies made to or by other departments of the Central Government, unless in particular cases or classes of cases, Government, in consultation with the Comptroller and Auditor General have decided that the inter-departmental adjustment would be unsuitable and undesirable.

Note 1: The Defence Services shall not be required to pay rent for building of the Central Civil Departments other than Commercial Departments and undertakings, occupied by the Defence Services for non-residential purposes, nor shall rent be charged for buildings of the Defence Services occupied for non-residential purposes by the Civil Departments of the Central Government other than Commercial Departments or Undertakings. Go''3rn-ment has the power in respect of these directions to decide whether a particular department or particular activities of a department shall be regarded as a commercial department or undertaking. A list of Departments and Undertakings at present recognised by the Central Government as commercial is given in the Annexure to this Chapter.

164 Note 2: The Defence Services also shall not be required to pay for the use of the Government Civil aerodromes and for other incidental services rendered by the Civil Aviation Department to Indian Air Force planes nor shall the Civil Aviation Department be charged, as a reciprocal arrangement, for the use of the aerodromes of the Indian Air Force by the Civil aircraft.

Note 3: No inter-departmental adjustment will be necessary on account of damages caused accidentally by one Department to another e.g., no compensation is payable for damages caused accidentally to Defence by the Railways and vice versa.

ADJUSTMENTS WITH STATE GOVERNMENTS

In the case of transactions between Defence Services and the State Governments, or wee versa, inter-Governmental adjustment shall always be made unless specially dispensed with by mutual agreement between the Ministry of Defence and the State Government concerned.

ADJUSTMENTS WITH OUTSIDE BODIES Payments shall be required in all cases where the Defence Services render services or make supplies to a non-Government body or institution or to a separate fund constituted as such inside or outside the Public Account, unless Government by general or special order gives directions to the contrary. Relief in respect of payment for services or supplies given to any body or fund should ordinarily be given through a grant-in-aid rather than by remission of dues.

REMITTANCES INTO BANKS AND TREASURIES ON MILITARY RECEIVABLE ORDERS

(i) Cash tendered by an officer of the Defence Services on Bank/non-bank treasury shall be accompanied by a Military Receivable Order in triplicate. The original duly receipted will be delivered to the tenderer and the Duplicate sent to the Controller of

165 Defence Accounts concerned by the Bank/Treasury Officer through the Focal Point Branch.1 The triplicate will also be returned to the depositor:

(ii) The duplicate copies of M R.Os. will be received in Accounts Section in the Controller's Office along with the "Credit Scrolls'VSchedule of Receipts" from Banks/Treasuries and scrutinised to see that the transactions pertain to that particular office. Wanting M.R.Os. will be called for from the Focal Point Branch. In cases where the MROs are lost in transit a certificate in lieu will be furnished by the dealing branch to the Focal Point Branch in the format at Annexure 'B'.

(iii) Details of each M.R.O. in respect of remittances . into Banks will be recorded in the "Register of M.R.Os" maintained for the purpose as per specimen given in Annexure 'A'. Separate folios will be allotted for each Bank which will be arranged in the alphabetical order in the Register. In respect of remittances into Non-Banking treasuries the register will, however, be maintained Statewise/Accountant General wise. Totals in the registers will be reconciled with the totals' as reflected in the DMS.3

(iv) Duplicate copies of M.R.Os. received from Banks/Treasuries will be adjusted in Accounts Section at the end of each month by debiting the head "Reserve Bank Deposit- Defence" and crediting the Suspense Head "Remittances into Banks and Treasuries" as minus charge. The month of adjustment will be suitably recorded in the appropriate column of the register referred to above. Totals of the duplicate M.R.Os. adjusted will be reconciled at the end of the month with the credits appearing under the head, "Remittances into Banks and Treasuries" in the R.D.R. Heads sectional compilation as minus charge.

1 And direct by Treasuries.

2 Or Treasury concerned

3 and in case of Treasuries with inward monthly settlement accounts of the Accountant General concerned.

166 (v) Original copies of the M.R.Os. (sent by the depositors) will be received in Audit Sections/Accounts Section and adjusted by them on a day to day basis by debiting the Suspense Head "Remittances into Banks/Treasuries" and crediting the relevant Service Head/AG Suspense Head etc. The original copies of M.R.Os. will after adjustment be passed on to Accounts Section each month along with a Statement of M.R.Os. adjusted separately in respect of each Bank/Treasury.

Note: In the case of remittances into Banks or Treasuries of amounts adjustable by the Pay & Accounts Offices (O.Rs.) such as refund of excess money in imprests, refund of overpayments of Pay and Allowances of J.C.OsJO.RsJN.Cs.(E), liquidation of debit balances and estates of deceased soldiers, receipted (i.e. original) copies of M.R.Os. will be sent direct by the depositors to the P.A.Os. concerned, who functioning as audit sections, will adjust them in the manner indicated above. Such MROs are to be made in favour of the CDA (ORs) concerned.1

(vi) The fact of the adjustment of the original copies of M.R.Os. will thereafter be recorded in the appropriate columns 9 and 10 of the register referred to at (ii) above and their totals agreed with printed compilation. If the entries exist in columns 6 to 10 of the register against each M.R.O. the items will be treated as "linked and paired" and endorsed as such in the remarks column. Summary of the register prepared at the end of each month will show the amounts credited to the Suspense Head "Remittance into Banks/Treasuries" (as recorded in column 6 of the register) and amounts debited to that Suspense Head (as recorded in column 10 of the register) as also the balance remaining outstanding under the above Suspense Head. Total of the unlinked M.R.Os. should tally with the net amount remaining under the Suspense Head.

(vii) In cases where original copies of M.R.Os have been received and adjusted, but for which the corresponding duplicate copies have not been received, the matter regarding the non-receipt of the duplicate copies will be taken up with the Bank/Non-

167 Bank Treasuries by the Accounts Section. In the event of any Bank/Non-Bank Treasury denying the deposit of the amount, the case will be referred to Audit Sections concerned/Accounts Section who will be responsible for further investigation and its final clearance in communication with the parties concerned.

(viii) Similarly, a list of items remaining unlinked at the end of each quarter will be extracted by the Accounts Section to Audit

1 The offices of CDA (ORs) have since been abolished. Requires amendment. Sections/Accounts Group concerned, duly supported by duplicate M.R.Os. for further action. With reference thereto the Audit Sections/Accounts Group concerned will intimate the Accounts Section the month's account in which the original M.R.O. received by that section was adjusted after consulting the Register maintained for this purpose in the Audit Sections/Account Group concerned. In cases in which the original copies of the M.R.Os are stated to have been lost/not received at all necessary adjustment will be carried out by the Audit Sections/Account Group concerned with reference to duplicate copies thereof received by the Accounts Section from the Bank/Treasuries.

Note : To guard against any wrong payments being authorised, it will be ensured that in all cases in which the payments become due on the basis of adjustments made with reference to original (i.e.Depositor's) copies of the M.R.Os. (e.g. refund of security deposits, refund of unutilised amount of TA/DA/LTC advance, release of estate of deceased, deserter etc.) that the duplicate copies thereof have been received from the Bank/Non-Bank treasuries.

REMITTANCES TO DEFENCE SERVICES FROM BANKS AND TREASURIES i.e., CHEQUES DRAWN ON BANKS & TREASURIES

(i) When a cheque is drawn a Punching Medium will be prepared by the Audit Section by crediting the Suspense Head "Cheques and Bills" and debiting the relevant service head.

168 (ii) Schedule III will be sent to Accounts section where the linking of the paid Cheques with the Schedule III will be done by manual process.

(iii) To facilitate linking of the paid cheques with the Schedule III in Accounts Sections, a distinguishing mark of the section issuing the cheque will be made on the cheque by the "Disbursement" Section at the time of its issue.

(iv) Schedule III received in the Accounts section from 'D' Section etc. will be recorded section-wise/office-wise and date- wise and will form the basis for linking with the paid cheques.

(v) Paid cheques along with the debit scrolls/schedules of payments will be received in Accounts Section daily/bi-monthly from the Bank/Treasuries. These will be scrutinised to see that they pertain to the particular office. Wanting paid cheques will be called for from the Focal Point Branch concerned.1 In cases where the cheques are lost in transit a certificate in lieu will be furnished by the dealing branch/Focal Point Branch1 in the format shown in Annexure "C".

(vi) With the help of the distinguishing mark mentioned at SI. No. (iii) above, the paid cheques will be sorted out section- wise, office-wise and date-wise and paired with the corresponding entry in Schedule III. Suitable note of the linking having been done will be made on the Schedule III itself.

(vii) Accounts Section will prepare Punching media once a month debiting the Suspense Head "Cheques and Bills" as minus Receipt by contra credit to the head "Reserve Bank Deposits-Defence".

(viii) On receipt of the printed RDR Heads compilation from EDP Centre the total amounts credited/debited to the suspense Head "Cheques and Bills" will be reconciled with those appearing in the Schedule Ill/the sum total of the paid cheques received and cancelled during the month, respectively. When a cheque is cancelled the Audit Section concerned will intimate the Accounts

169 Section the details of the same including the month's account in which the adjustment is made. Note: Net amount outstanding under head "Cheques & Bills" will be reviewed and reconciled every month at the time of effecting the above agreement with the compiled actuals.

(ix) Cheques lapse at the end of the third month after the month of issue; thus a cheque bearing a date any time in January is payable at any time upto 30th April. When cheques remain in the Schedule III unlinked for more than three months after the month in which 'they are issued, they should be extracted to the Audit section concerned.

(x) With reference to the list of unlinked cheques received from the Accounts Section, the Audit Section should require the payee either to return the time-expired cheque or explain the causes for its non- encashment. If as a result of this enquiry, the cheque is reported as lost, the Bank/Treasury Officer concerned should be issued a stop payment order and action taken to cancel the cheque and to issue a fresh cheque in lieu wherever required. (xi) When a cheque is cancelled and a fresh one is issued in lieu, the amount will be adjusted by credit to the head "Cheques and Bills" for the cheque drawn and debit (minus receipt) to the head "Cheque and Bills" which was credited at the time the cancelled cheque was drawn. When a cheque is can-celled/lost/received unpaid and no fresh cheque is issued In lieu during the course of the year or in subsequent year (s), the amount will be adjusted by debiting the head "Cheque and Bills" (minus receipt), the relevant service head operated

170 at the time of issue of cheque being credited as reduction to expenditure in the accounts of the month in which the cheque is cancelled/reported lost/received unpaid.

Note: Before issuing a fresh cheque in lieu of a lost cheque the AT Section concerned should obtain a non-payment certificate from the Accounts Section in addition to ensuring other conditions such as issue of a stop payment order to the Bank concerned and obtaining indemnity bond from parties other than Govt. Depart- ments and Banks. The Accounts Section will furnish the non-payment certificate after verifying the Schedule III and record a suitable note on the Schedule III regarding issue of the NPC. The detailed instructions regarding issue of NPC are contained in paras 189 to 193 OM Pt II Vol. I.

RECONCILIATION OF THE BALANCES IN THE BOOKS OF THE RESERVE BANK

(a) After the accounts of the month are dosed, the Central Accounts Section of the Reserve-Bank of India, Nagpur, will furnish the Statement of Closing Balance to each of the Controller of Defence Accounts by the 18th of the following month as per specimen given in Annexure-'N' to this Chapter. It will be the responsibility of the Controllers to check and verify that the balances in respect of their offices worked out by the Reserve Bank in its books are correct, and agree with their respective balances as worked out in their own accounts. These figures should be reconciled with the total figures recorded in the Outward and Inward Settlement Account Registers and in Register of Main scrolls received from Focal Point Branches which will be abstracted monthly in a separate register titled "Reserve Bank Deposits Accounts."

(b) The Reserve Bank will also intimate monthly to the Controller General of Defence Accounts the balances of each Controller of Defence Accounts in the form in Annexure 'O1 to this Chapter. Controller General of Defence Accounts will reconcile and confirm the monthly figures for the Department as a whole to the Controller General of Accounts for necessary contra reconciliation with bookings under Reserve Bank Deposits.

171 Note: The balances under head 'Reserve Bank Deposits— Defence' in the Defence books must agree with the balances as worked out in the books of the Reserve Bank in order to enable the Controller General of Accounts to effect necessary reconciliation.

VERIFICATION AND RECONCILIATION

Outstandings under the Suspense and Remittance Heads should be reviewed and reconciled every month and regular action taken for the clearance of outstanding items. The Officer-in-Charge of the Section should personally watch the completion of this work every month and for this purpose all the reconciliation sheets and suspense registers etc. should be put up for his scrutiny and signature.

Ordinarily there should remain no balance at the end of the year under the heads "Accounts with States" and "Reserve Bank Suspense", if prompt action is taken in intimating the transactions to the Focal Point Branch for rectification and in adjusting the transactions of the inward monthly accounts of other Accounts Officers. In case there is an outstanding balance at the end of the year the reasons for the same should be investigated and the items adjusted in the accounts in hand i.e. in the earliest possible month of the next year.

The missing advices or vouchers in regard to which the djustments have been made under head "Reserve Bank Suspense-Classified" (See para 103(i)) should be vigorously pursued with the Accounts Officers concerned so that the outstandings under this Suspense Head are brought down to the barest minimum by the end of financial accounts of the year.

The balance under the heads "Remittance into Banks and Treasuries" and "Cheques & Bills" will represent the amount of unaccounted enrtances (which will be rare) and the amount of uncashed cheques respectively. These should be reconciled every month vide para 94.

172 15. IFA System

Evolution of IFA System in Govt. of India

The Integrated financial Advice system was introduced in various Ministries of Govt. of India after October 1975. The basic aim of the scheme is to expedite decision making by delegation of financial powers to the executive authorities which are to be exercised in consultation with the Integrated Financial Advisors to bring in the concept of authority with responsibility and accountability. The IFA system was introduced in the Department of Defence Production in 1976 and in the Department of Defence in August 1983.

Difference between Audit and Integrated Financial Advice

There are basically two types of Audit:

1. External or Statutory Audit and

2. Internal Audit

Statutory Audit: C&AG has been mandated under Article 149 to 151 of constitution of India to audit Account of the Union and the States, grants for which have been voted by the Parliament and the State Legislature. It is called Statutory Audit because it derives its power from the statute i.e. Constitution of India. Audit conducted by C&AG also revolves around 3 Es i.e. efficiency, economy and effectiveness. The audit of Defence Services is conducted by Director General of Audit Defence Services on behalf of C&AG. The audit of State Governments and Union Territories is carried by Accountant General (Audit).

Internal audit is viewed as an agency which assists the executive in ensuring that the money and other resources have been properly accounted for as per the procedures. That there has been no fraud, misappropriation/misutilisation of resources, that the assets have been properly accounted for and safeguarded. That the structure, operating systems, procedures and internal control systems are cost effective and efficient. That the objectives of the performance have been achieved with optimum efficiency, economy and effectiveness. In other words, output achieved is commensurate with input- that is money spent has achieved the objectives for which the same was allocated. The audit also helps to highlight losses, wastage and under

173 utilization of manpower and machinery. It also highlights the non installation and utilization of Plant and Machinery and non / slow moving of store items. The audit also adversely comments upon non maintenance /non production of documents by the executive by whom expenditure has been incurred.

Integrated Financial Advice

Integrated Financial Advisor is integral part of the process of decision making for procurement of stores etc. The difference between Internal Audit and IFA lies in the fact that internal audit is independent of the executive whereas IFA forms integral part of it. The vital difference between the two is that no expenditure out of public money can be incurred by the executive if the same has been objected to in internal audit whereas even in cases where CFA does not agree with IFA, he is competent to sanction the expenditure in spite of the dissenting note of the IFA subject to certain conditions. CFA in IFA system can overrule the IFA whereas internal audit can not be overruled by the executive. Integrated Financial Advisor is associated in proposals from acceptance of necessity to post contractual stage.

Introduction of IFA System in Service Headquarters.

In the light of recommendations of a sub Committee of the Committee on Defence Expenditure, the Ministry of Defence decided in Nov. 1991 that exercise of delegated financial powers by the authorities lower than Ministry of Defence should also be with the advice of local financial advisors. The 19th Estimate Committee of Parliament was also assured in this regard in 1992-93. These developments culminated in the introduction of IFA system in the three Service Headquarters, Headquarters Maintenance Command and Director General Border Roads as follows:

i. IFA Naval HQrs. - March 1994

ii. IFA Air HQrs. - April 1994

iii. IFA Army HQrs. - August 1994

iv. IFA (BR) - March 1995

v. IFA (MC) Nagpur - Sep 1995

174

Objective of IFA System

The objective of IFA system is to provide independent financial inputs to the competent financial authorities (CFAs) in exercise of delegated financial powers to expedite decision making thereby providing greater satisfaction to the troops deployed in the field as well as enhancing operational preparedness.

Delegation of Powers & IFA System

. Delegation of Powers necessary for Administrative Efficiency and faster Decision Making. . Finance Ministry has delegated financial powers to other Administrative Ministries/Departments from time to time. . A large-scale delegation took place in 1975/76 consequent to Committee set for Departmentalization of Accounts. . Along with the delegation, a scheme of Integrated Financial Advice was also introduced in Ministries/Departments of Govt. of India. . The basic objective of the scheme was to make financial advice/inputs available to the executive authority in-house for better decision-making with a view to economy, efficiency and effectiveness. . As per the scheme, an Integrated Financial Advisor was attached with each Ministry/Department of GOI. . Financial Advisor so appointed was made part and parcel of the Ministry who was mandated to help the Secretary/Minister of the Department in all financial, budget, accounting and audit related matters. . Financial Advisor was placed under the administrative control of the respective ministry/department. . For the exercise of delegated financial powers, FA acts as Internal Financial Advisor and concurs of all such proposals/ cases. . For cases beyond delegated powers, he provides inputs to Finance Ministry and thus acts as a representative of Finance Ministry. . Because of the above features, the scheme has been called Integrated Financial Advice (IFA) System.

175 IFA Scheme in Defence

. IFA Scheme in Ministry of Defence was first launched in 1976 when Department of Defence Production & Supplies and Defence Research & Development were brought under the scheme. . IFA system in the main ministry i.e. Department of Defence was I introduced in 1983. . With this Ministry of Finance (Defence) became Ministry of Defence (Finance). . Secretary (Defence Finance) or Financial Advisor (Defence Services) as the head of Ministry of Defence (Fin) is the Integrated Financial Advisor of Ministry of Defence

IFA System in Services

. Arun Singh Committee on Defence Expenditure recommended - Wide scale delegation of financial powers to Services and - Introduction of IFA System in Services . This was also the time when changes were introduced in the various Govt. Deptts. Navy also took a cue from this and brought about a momentous change in the area of its resource management called NMS in 1994. Basic features of NMS . It provides for greater de-centralisation of responsibilities for target setting, planning budget formulation and financial control by involving lower level functionaries with Accountability at every level. . Creation of Authority-cum-Responsibility and Budget centers under various PSOs in the NHQ . Establishing clear relationship between financial inputs and outputs or physical targets. . Better value for money in all exp. Programmes. . NMS also envisaged introduction of the system of IFA both in the NHQ as also in some selected formations to advise them on various financial matters including the exercise of their enhanced delegated financial powers. . IFA System was also established in Air HQ in 1994 under which an Integrated Financial Advisor with a Deputy IF A was placed in Air HQ. . IFA (Army) and a Deputy IFA was also placed in Army HQ in 1994.

176 . New Management Strategy for Ordnance and EME was implemented in 1997.

Role of IFA

. To concur all proposals falling under the delegated powers at the necessity as well as expenditure sanction stage. . To advise in the matters falling under the powers of MOD. . To participate in TPC/PNCs held by the various authorities in Service HQ. To assist in budgetary matters including preparation of Committed Liability Data base. . To aid and assist in preparation of replies as regards to audit Para, draft Paras etc. . Any other duties given by FA (DS).

Latest Development

Delegation of Financial Powers to Defence Services-2015 has been issued by Ministry of Defence vide GOI MOD order No. CoordA-102 dated 20.04.2015.

The New delegation has done away with the inherent powers of CFAs and also all procurements are to be processed under the collegiate system of ‘Procurement Committee’. These two changes will have significant bearing on the functions of IFA SYSTEM.

Brief Highlight of the MOD Order No. Coord-102 dated 20.04.2015

1. Time frame for implementation – The revised delegation of Financial Powers-2015 are subject ot implementation of macro issues within the stipulated time frame as given in Annexure-10 of the ibid Govt Orders. 2. New Structure of schedules: The schedules have been reconstructed and arranged Minor Head wise/Sub Head wise as per the CHB and consist of three distinct categories viz Procurement powers, Works Powers and Non Procurement Powers, to facilitate linkage of expenditure. Further, powers of Central Procurement and Local Procurement have been

177 given separately in certain categories of schedules. This should facilitate in determining the appropriate CFA in each case. 3. There would be no inherent financial powers in the new dispensation and therefore, CFAs at every level/formations would require to exercise the delegated powers in consultation with IFAs. In remote location where IFA is not co-located, CFAs may approve cases up to Rs 1 Lakh without referring it to their notified IFA. The definition of the co- located has been given as IFA being in the same station. All CFAs having co-located IFAs will require to take concurrence of IFA for all procurement cases irrespective of its value. 4. A collegiate based mechanism has been adopted name Procurement Committee to speed up procurement cycle. The role of existing CNC/PNC will get subsumed in PC. The activities from preparation of RFP to placement of supply order will be performed by the procurement committee in which IFA or his rep will be a member apart from other stake holders.

178 16. TIME MANAGEMENT

‘Effective executives do not start with their tasks. They start with their time. And they do not start out with planning. They start by finding out where their time actually goes. Then they attempt to manage their time & to out back unproductive demands or their, times’

Peter Drulker.

To every thing are a reason, and a time for every purpose under heaven Time, the scarcest resource. No matter what you are, no matter what you do , no matter what you are, You just have 24 hours flat, not one minute more nor one minute less. Once the time has gone it is gone forever, it can never be recouped.

We are not in a position to create more time and so we have to conserve it not just conserve it but manage it.

Manage it, to give us maximum returns, maximum satisfaction. The best utilized time means, best utilized life, & best-utilized life is life best lived. When is it that should be done to manage time effectively & efficiently.

The first thing which comes to our mind is being systematic, being neat and doing work in an organised manner a structured daily routine or having time for everything but there is more to time management than simply being better organised or working faster. Most of the approaches to time Management are mechanistic viz., sort out your goals, get yourself organised with a particular system and practice self discipline and your problem is solved. But it is easy said than done.

For better time management we should first understand what the problem is then we should look at why you have the problem. There after, we should aim at solving the problem successfully, thus making a difference not just for today or for few weeks but to find ways that would help us to manage time for ever.

Various people may have various reasons for time management problems. Your personality, upbringing, beliefs attitude & social context, your skills & so many other behavioural & psychological facts affect the way you manage

179 your time. Time isn’t only for your working life it also applies to your personal, social & family life. Time is about helping you get out of life what you want and help you do things the way you want to.

It is about having time to enjoy what you do as well as getting through what you have to do.

The answer to our problem of time is not always ‘more time’ what would you do of you had an extra hour? Your answer could be from catching up on sleep to finishing work on hard, it is just not possible to be productive all the time & for once even if it was possible, it is not desirable. In Japan there have been death due to overwork of the Japanese term for it is KAROSKI.

Naturally, we all like to die in peace.

So even relaxing is a serious work than any other.

So once again we come back to the basic question of what do we need more time? May be the set of questions will help you think about your time.

 What do you regret not having done in your life so far? (Learn something, visit a place, and Book).  What do you want to achieve more than anything else?  If you had an extra hour a day. What would you do with it?  Which is more important to you, your work, your family, your leisure.  What do you want to feel at the time of retirement.  What activities give you more pleasure?  If you could do anything. What would it be? Thus once we answer these question we have an insight to our desires, thus we see that time management is not just about planning for the future but also about living today.

The first and foremost thing in Management of time is to understand the problem.

There are various sources from which our problem of time emanates. The following are interwoven with our personalities & nature.

(i) WORK ETHIC: If we follow the norm that “We work not only to produce but to have value to time “ we are bound to have problems. If every time you feel uncomfortable if you’re not doing something or that relaxing is a waste of time, we are sure that you have a strong sense of the

180 work ethic, it is not a bad thing but it can cause problems if taken to extremes. Two problems related to the work ethic are “hurry sickness”, “workaholism” (a) Hurry sickness is a phrase used to describe people with an overdeveloped sense of time urgency. Some people love the constant pressure & apparently thrive on it. However, some people love it but become stressed physically/ psychologically. Yet some others might feel that this type of behaviour is thrust upon them from the external Environment. (b) The Second problem was workaholism this is applied to people who work too hard and too long, even when they are successful. Hard work is a virtue, but when work becomes all- consuming all pervasive, it is a potential problem. Workaholic don’t realize they have nothing but work.

2) INFLEXIBILITY:

Flexibility is a quality prized in most situations. The flexible person is able to explore all kinds of solution to a problem, the obvious, the not so obvious and the down right unlikely. Flexible people adapt to a situation & learn new skills as and when necessary.

The behaviour is quite useful from the perspective of time management Flexibility becomes a problem only when you show “Butterfly” behaviour from one task to other without finishing anything. This reverse of flexibility can be major Time management problem. Inflexibility means change worries you, you’re unhappy about abandoning old habits, way of thinking & behaving, and things or even people. Such people pay close attention to detail & work through a series of logical steps. This is again a very desirable quality if one is systematic but it too becomes a problem when you fail to see reason or your sense of logic is challenged.

It may also make you less able to solve new problems or more new solutions. Thus, if inflexibility hold us back, it is definitely a problem.

Each one of us can identify our reasons of time management problems under 3 categories:

(1) Personal (2) External (3) Socio-cultural Personal Category (A) Organisational Problems: - I spend too much time on trivial things. - I never finish one thing before starting another.

181 - I can’t tract of things. - I don’t remember.

(B) Psychological Problems - I lack self discipline - I can’t say no. - I am interested in too many things. - I cannot concentrate.

(C) Difficulties in your relationship with other people - I don’t delegate - It’s only me who works. II. External Category A. Relating to other people. - Too many interruptions. - Other peoples one unreliable. B. Relating to the company/Industry for which you work. - It takes a week to get a simple decision. - There is not enough staff. - Working environment /culture is not healthy.

III. SOCIO – CULTURAL CATEGORY

A. To do particular things. B. To fulfill certain roles. C. To follow certain social criteria that you don’t agree with There are certain qualities of a good time Manager :-

- Clarity of thinking - Decisiveness. - Single mindedness - Good memory. - Determination - A methodical Approach. - Punctuality. - Calmness - Objectivity. - Rationality. - Leadership.

182 Now all these qualities are not coming to few lucky people by nature, we all have the power to think clearly to show decisiveness etc. but the main reason is that we fail to show these qualities consistently, cause they require certain amount of effort. It is a matter of developing what is already there, through effort followed by right kind of learning. Psychology tells us that behaviour, which produces desirable results, is likely to be repeated.

Thus once we make a consistent & sustained effort to manage time more effectively, we soon begin to find that it starts to bring benefits, that in turn makes us repeat these behaviour. Thus, we learn to be effective by virtue of our efforts. Thus, right motivation + right frame of mind + right techniques = Good time Management.

The first step towards effective time Management is identifying the current use of your time. Where does most of your time actually go? It is sometimes difficult to draw a precise line between essential time & peripheral time. Essential time is the time necessarily spent on tasks due to the demands of the job. Peripheral time, is the which is not actively wasted but which is spent on tasks, which occur due to our own inefficiency like – looking for things, forgetting certain things.

The best way to identify this is that you maintain a Time Log.

TIME LOG

Although it is not a very interesting job to start with, but it gives you a base line data about what you do, when and where, a feel for interruptions, where time gets lost and how long thing take.

In first column marked time you may note the time you start the activity and in II column put the activity i.e. what you are doing. When a change of activity is there again note. III column can be filled in as and when desired. May be at the day end or after every few hours. Once you fill the time log, you find out how much time you have spent on thinking, planning, receiving, chatting, tea-coffee etc. If still this is not possible, for a coupe of days write a list of things you want to accomplish that day.

At the end of the day compare your list with what you actually accomplished. Try & identify where you wasted your time. Try & identify the lacunae in your working style. Its not that we waste time deliberately sometimes our Time is wasted due to some "hidden time consumers” e.g. often

183 we look at the main part of a task & forget about all the little things that go on around it & take time. This is especially true if the task has an externally set time limit. Suppose there’s a meeting for 1 hour, Psychologically, we set aside one hour, ignoring other task, which are associated with attending the meeting. Like – picking up relevant papers, travel time, leaving the office, giving instruction etc. which may take few minutes to hours. Although these tasks may seem trivial but together they add upto taking a lot of time.

So what to do? : We have a 3 pronged approach:

(I) TO MANAGE TIME WE NEED TO PLAN OUR WORKLOAD. (1) We need to specify objectives, that we wish tp achieve and while managing workload they help us : (a) Identify clearly what needs to be done. (b) Plan how we are going to do it. (c) Monitor our progress while we are doing it. (d) Assess the extent of our success when we have done it. (e) Learn more effectively from the experiences it has offered us. So specifying objectives give us where we have to reach and how far we have reached.

(2) We can always prioritize our work as – (a) Most important (b) Important (c) Less important

Its not that you need not finish the less important task but it indicates that it can wait for some time while most important needs to be handled first. Try and see that at the day end you clear off the table. Try and finish that day’s work that day itself. It will save you from last minute stress and crisis.

(3) Avoid Interruptions Interruptions during the working day not only take time but they also steal precious minutes while you pick up the threads of your work against after they are over. Interruptions from other people come mainly via the telephone and by people arriving to see you, without an

184 appointment. Some interruptions are part of your work and they will occur, yet many of them are of unwanted in nature, try and avoid them. If you feel like chatting with your colleagues you can always finish the task at hand and take 5 minutes break, provided the other person is also free. Such short breaks leave you more fresh and energetic.

(4) Reduce the paperwork: Try and cut down on paper work. Avoid unnecessary reports etc. Cut down on the number of papers, which you keep as might need, and which you never need.

(5) Keep things on fixed places, so every time you know exactly where to look for a pen or glasses or papers. This saves a lot of time which is spent on hunting for things. (6) Try and make a schedule for the day and try to accomplish it and ‘One should always remember that there is always a better way to do things than the one we are using at present”. So always try and using your working procedures.

(II) MANAGING OURSELVES

When we tried to sort out various reasons to see why we have problems of managing time, many of them are related to our psychology. Learning to manage time not only means learning strategies for organizing and planning our professional tasks, it also means training to change things in ourselves and once these changes are there, we must use self-discipline in order to maintain ourselves and make sure these changes are maintained.

1) Try and find out conditions in which you operate most productively. 2) Always have a positive approach. Your self-confidence should always remain at the highest peak. So whenever faced by increasing workload or excess pressure you know that you can always cope with it. Your are always sure of yourself to meet the deadline. Start and finish the day positively. Positive attitude is must for managing time effectively. At the end of day if you feel fed up with every thing including you. Your will not be enthusiastic next morning also. May be you feel dull, when you are dull you tend to waste time. 3) Our approach should shift from being ‘out come centered’ to ‘task centered’. It is desirable to be out come oriented while setting objectives, but once you are performing the task, Your energy and attention should be directed towards the task.

185 To be outcome centered at this state would mean a waste of time and energy. Thinking about the outcome while work is still in progress can also destroy concentration and contribute towards the very results that you fear, i.e. failure.

4) You need to be realistic. When you fear failure, you are bound to link yourself to perfectionism. Perfectionism stems from erroneous belief that the more time we spent on something the better it is bound to be. Such a belief ignores the law of diminishing returns, which in context of Time Management is most precisely expressed in the PARETO TIME PRINCIPLE or the 80:20 principle named after Italian economist VILFREDO PARETO (1848-1923). This principle states that within any system the tendency is for some constituent elements to yield much higher returns than other, with 20% of the total elements being high yielders producing 80% of the total returns while 80% as low yielders account for remaining 20% returns. In terms of time management, it implies that 20% of time you spend on something is likely to produce 80% of your final output. We take e.g. of writing, in 20% time given to our surges of inspiration in which 80% of the work is done and 80% of time is spent on revising, editing, pencil chewing etc. and this accounts to 20% of the output.

So when we say be realistic it means that we should not over estimate our capabilities but do what can be achieved in a specified time frame.

5) Don’t be too busy: We all need time to relax, recharge our batteries, cultivate new ideas, look after our physical & mental health . Whether we are busy for good or not, we can work efficiently & effectively only if we give ourselves sufficient time off from work. We all vary in the amount of time we can regularly spend on job. Some people have long concentration spans, others need to take frequent short breaks. Some people have boundless mental & physical energy other tire quickly. This again comes from our living style. If we are rushed up in the morning we are bound to be lot be tired by noon.

Going back to what we had discussed earlier, while planning we should have time for every thing.

So whatever our constitution both physical & mental, we should never at any point of time be too busy.

We should:

186 Relax for 1 hour every evening before going to bed ( for the benefit of your sleep).

Have one hour every day to pursue an interest or hobby ( for sake of your sanity).

Exercise for one half-hour at least 4 times a week (for benefit of your health).

Take two and a half uninterrupted hours for meal breaks each day (for the benefit of your digestion)

You fail to do so you would either qualify as a workaholic or a time waster instead we should aim at being work enthusiast.

6.) Know your Body Rhythms

The existence of human circadian rhythms or Bio rhythms is well known to biologists & psychologist.

These rhythms they indicate that there are certain times of the day when we are at our best both physically & psychologically. Some of us are more creative in mornings, some in evenings and so on.

In order to manage time effectively note your own rhythm & plan your day’s work accordingly . If you are more effective at problem solving & generating new ideas in the morning use this time for more creative work. If you feel bogged down in mornings then put off things like interviews & meetings with colleagues until later in the day.

Irrespective of our personal rhythms, most of us have a productive period between 10 AM and noon.

7. Don’t put off unpleasant task because if they are unwelcome today they’re likely to be more undesirable in future. What ever you have to do it now, this saves you from piled up work and always think I’ll be glad tomorrow that I did it today”

8. Don’t procrastinate over decisions : The only way to make decision is to make them. Once you have the information and the moment of decision has arrived, hesitation not only wastes opportunities but also squanders time.

187 9. Pro-act rather than React: To pro-act means to anticipate events and be in a position to take appropriate action as soon as the right moment arrives. To react, means have little anticipation and do something only when you are overtaken by events.

10. Use your memory more effectively: So we should aim for excellence rather than perfection and we should also learn to take the blame for our own time losses. Certainly there are occasions when other people are more responsible for our time loss than we are but for most of us and for most of the time the blame must fall fairly & squarely upon ourselves. So, if we are in a habit of saying where has the time gone. We should change it to : How did I use the time?

III. MANAGING YOUR RELATIONS WITH OTHERS:

Value of social relationship doesn’t rest solely upon whether other gain or lose time for us. Social relationships provide us with friendship emotional and professional support amusement and all the other things upon which our psychological well being depends.

A conflict is there between your pleasure in their company & your anxiety over your work. In order to ensure that others allow us to make best use of our time, we therefore have to develop 2 important skills;

1) We have to know how to ask and whom to ask for help when it is needed

2) We have to be able to indicate, without giving unnecessary offence that we are too busy at the moment to deal with a particular issue or engage in social chitchat, however pleasant.

1) HOW TO ASK FOR HELP:

A) Delegating: How to ask for help raises first and foremost the question of how to delegate, for delegation is essentially a way of obtaining help. Even though you may have a right to delegate to others by virtue of your position, delegation is by no means as straight forward as it may seem, since it carries with it an element of risk by the very fact that you are assigning to someone else work for which you carry prime responsibility. Effective delegation does not therefore come easily and there is no doubt that it is an important skill in its own right. It carries with it a number of specific requirements.

188 1) Recognizing the need for delegation 2) What to delegate. 3) Delegate specifically.

B) GETTING INFORMATION

We can’t carry every thing in our heads and there are frequently times when we need information or guidance from others. The good time manager knows where to go for this information and guidance and how best to ask for it. For e.g. when we are chasing information we often find an inordinate amount of time is wasted while we are passed from one person to other, until we find someone in a position to help us. Much of this time wasting can be avoided if we keep careful records of the various people and agencies who have helped us in past, noting against each the kind of problem with which their help was sort. This allows you to ask someone by name when you are looking for help, an essential strategy when dealing with large organisations.

2) INDICATION YOU’RE TOO BUSY

The best-respected people in professional life tend to be those who always seem to have been time for others. But having time for others doesn’t necessarily mean having time for them now, right this very minute. The secret of these well-organized folk is that they are able to sum quickly the kind of time demands someone is going to make of them, and if these are like to exceed time available they make a future appointment rather than try to fit him or her into the urgency of the moment and do justice neither to them nor to the other tasks on hand.

I) Avoiding time-loss when someone rings you is to eliminate the social small talk however pleasant in itself, which usually precedes the real reason for the call.

II) There are three elements in your response when you want a short talk. Firstly you make clear that you’re terminating the conversation, secondly you give a reason for doing so; and thirdly you offer an invitation to talk again at a more convenient time.

ORGANIZATIONAL ISSUES: In addition to the issues associated specifically with colleagues ande clients, time can be lost as a result of the organizational structures within which we have to work. Some of these structures may lie outside our control, but it is important to identify where these structures go wrong, so that whenever change is possible steps can be taken to bring it about.

189

At the end, the managing time has a lot to do with managing life, and I want to end by re-emphasizing this, it is difficult to manage time if we see the process as simply a set of techniques which we hope to graft onto an unchanged life style. Time is finite capital and not renewable income. Time is every hurrying by, the present moment ever receding into the irrecoverable past. Where has the time for both of us gone? Have we used it to good effect? The one sure thing it is that it will never return to either of us.

Manage your time as you manage your money

Do you know how generally a 70-year life is spent? On an average, 25 years in sleep, 8 years in study and education, 6 years in rest and illness, 7 years in holidays and recreation, 5 in commuting, 4 years in eating and 3 years in transition, i.e. getting ready to do all the above activities. That leaves only 12 years for effective work.

Charles Schwab, an American millionaire paid a consultant 25,000 dollars in 1936 to advise him how to best use this precious, irretrievable resource. His advice : "Start your day with a 'To do list' and priorities

190 17. ORGANISATIONAL CHANGE AND STRESS MANAGEMENT

Today’s changing and competitive workplace is increasing the stress levels workers and managers alike. In Asia more and more managers are showing signs of chronic fatigue and burnout, and there is growing concern among senior executive in Asia. Stress seems to be a problem regardless of whether the economy in strong or weak.

A model of stress Potential sources Consequences

Environmental factors Individual differences Physical Symptoms

 Economic  Perception  Headaches uncertainty  Job exercise  High Blood  Political uncertainty  Social support pressure  Technical uncertainty  Better in locus of  Heart disease control  Hostility

Organisational factors

 Task demands  Role demands Psychological  Interpersonal demand symptom  Organisational structure Experienced  Anxiety  Organisational leader- stress  Depression ship  Decrease in  Organization’s life job stage satisfaction

Individual factors Behavioral Symptoms  Family Problem  Economic Problem  Productivity  Personality  Absenteeism  Turnover

WHAT IS STRESS:

191 Stress is a dynamic condition in which an individual is confronted with an opportunity, constraint, or demand related to what he or she desires and for which the outcome is prescribed to be uncertain and improvement.

The word `stress` is defined by the Oxford Dictionary as "a state of affair involving demand on physical or mental energy". A condition or circumstance (not always adverse), which can disturb the normal physiological and psychological functioning of an individual. In medical parlance `stress` is defined as a perturbation of the body`s homeostasis. This demand on mind-body occurs when it tries to cope with incessant changes in life. A `stress` condition seems `relative` in nature. Extreme stress conditions, psychologists say, are detrimental to human health but in moderation stress is normal and, in many cases, proves useful. Stress, nonetheless, is synonymous with negative conditions. Today, with the rapid diversification of human activity, we come face to face with numerous causes of stress and the symptoms of anxiety and depression.

"Nothing gives one person so much advantage over another as to remain always cool and unruffled under all circumstances." —Thomas Jefferson

The Dyanamics of Stress

In a challenging situation the brain prepares the body for defensive action—the fight or flight response by releasing stress hormones, namely, cortisone and adrenaline. These hormones raise the blood pressure and the body prepares to react to the situation. With a concrete defensive action (fight response) the stress hormones in the blood get used up, entailing reduced stress effects and symptoms of anxiety.

When we fail to counter a stress situation (flight response) the hormones and chemicals remain unreleased in the blood stream for a long period of time. It results in stress related physical symptoms such as tense muscles, unfocused anxiety, dizziness and rapid heartbeats. We all encounter various stressors (causes of stress) in everyday life, which can accumulate, if not released. Subsequently, it compels the mind and body to be in an almost constant alarm- state in preparation to fight or flee. This state of accumulated stress can increase the risk of both acute and chronic psychosomatic illnesses and weaken the immune system.

Stress can cause headaches, irritable bowel syndrome, eating disorder, allergies, insomnia, backaches, frequent cold and fatigue to diseases such as hypertension, asthma, diabetes, heart ailments and even cancer. In fact, Sanjay Chugh, a

192 leading Indian psychologist, says that 70 per cent to 90 per cent of adults visit primary care physicians for stress-related problems. Scary enough. But where do we err?

Just about everybody—men, women, children and even fetuses—suffer from stress. Relationship demands, chronic health problems, pressure at workplaces, traffic snarls, meeting deadlines, growing-up tensions or a sudden bearish trend in the bourse can trigger stress conditions. People react to it in their own ways. In some people, stress-induced adverse feelings and anxieties tend to persist and intensify. Learning to understand and manage stress can prevent the counter effects of stress.

Methods of coping with stress are aplenty. The most significant or sensible way out is a change in lifestyle. Relaxation techniques such as meditation, physical exercises, listening to soothing music, deep breathing, various natural and alternative methods, personal growth techniques, visualization and massage are some of the most effective of the known non-invasive stress busters.

Stress Can Be Positive

The words `positive` and `stress` may not often go together. But, there are innumerable instances of athletes rising to the challenge of stress and achieving the unachievable, scientists stressing themselves out over a point to bring into light the most unthinkable secrets of the phenomenal world, and likewise a painter, a composer or a writer producing the best paintings, the most lilting of tunes or the most appealing piece of writing by pushing themselves to the limit. Psychologists second the opinion that some `stress` situations can actually boost our inner potential and can be creatively helpful. Sudha Chandran, an Indian danseus, lost both of her legs in an accident. But, the physical and social inadequacies gave her more impetus to carry on with her dance performances with the help of prosthetic legs rather than deter her spirits.

Experts tell us that stress, in moderate doses, are necessary in our life. Stress responses are one of our body`s best defense systems against outer and inner dangers. In a risky situation (in case of accidents or a sudden attack on life et al), body releases stress hormones that instantly make us more alert and our senses become more focused. The body is also prepared to act with increased strength and speed in a pressure situation. It is supposed to keep us sharp and ready for action.

Research suggests that stress can actually increase our performance. Instead of wilting under stress, one can use it as an impetus to achieve success. Stress can stimulate one`s faculties to delve deep into and discover one`s true potential.

193 Under stress the brain is emotionally and biochemically stimulated to sharpen its performance.

A working class mother in down town California, Erin Brokovich, accomplished an extraordinary feat in the 1990s when she took up a challenge against the giant industrial house Pacific Gas & Electric. The unit was polluting the drinking water of the area with chromium effluents. Once into it, Brockovich had to work under tremendous stress taking on the bigwigs of the society. By her own account, she had to study as many as 120 research articles to find if chromium 6 was carcinogenic. Going from door to door, Erin signed up over 600 plaintiffs, and with attorney Ed Masry went on to receive the largest court settlement, for the town people, ever paid in a direct action lawsuit in the U.S. history—$333 million. It`s an example of an ordinary individual triumphing over insurmountable odds under pressure. If handled positively stress can induce people to discover their inherent talents.

Stress is, perhaps, necessary to occasionally clear cobwebs from our thinking. If approached positively, stress can help us evolve as a person by letting go of unwanted thoughts and principle in our life. Very often, at various crossroads of life, stress may remind you of the transitory nature of your experiences, and may prod you to look for the true happiness of life.

Stress Throughout Evolution

Stress has existed throughout the evolution. About 4 billion years ago, violent collision of rock and ice along with dust and gas, led to the formation of a new planet. The planet survive more than 100 million years of meltdown to give birth to microscopic life . These first organisms endured the harshest of conditions—lack of oxygen, exposure to sun`s UV rays and other inhospitable elements, to hang on to their dear life. Roughly 300,000 years ago, the Neanderthals learnt to use fire in a controlled way, to survive the Glacial Age. And around 30,000 years, Homo sapiens with their dominant gene constitutions and better coping skills, won the game of survival. Each step of evolution a test of survival, and survival, a matter of coping with the stress of changing conditions.

Millions of trials and errors in the life process have brought men to this stage. Coping with events to survive has led men to invent extraordinary technologies, beginning with a piece of sharpened stone.

From the viewpoint of microevolution, stress induction of transpositions is a powerful factor, generating new genetic variations in populations under stressful environmental conditions. Passing through a `bottleneck`, a population can

194 rapidly and significantly alters its population norm and become the founder of new, evolved forms.

Gene transposition through Transposable Elements (TE)—`jumping genes`, is a major source of genetic change, including the creation of novel genes, the alteration of gene expression in development, and the genesis of major genomic rearrangements. In a research on `the significance of responses of the genome to challenges,` the Nobel Prize winning scientist Barbara McClintock, characterized these genetic phenomena as `genomic shock`.This occurs due to recombinational events between TE insertions (high and low insertion polymorphism) and host genome. But, as a rule TEs remain immobilized until some stress factor (temperature, irradiation, DNA damage, the introduction of foreign chromatin, viruses, etc.) activates their elements.

The moral remains that we can work a stress condition to our advantage or protect ourselves from its untoward follow-throughs subject to how we handle a stress situation. The choice is between becoming a slave to the stressful situations of life or using them to our advantage.

Positive Thinking Pays ……

A blind person once said:

"I thought when I lost sight I would be doomed to unhappiness. Now I have discovered that I am happier without my sight. Most of my unhappy thoughts came in through my eyes - I saw handsome faces of other people and was dissatisfied with my own looks. Most joy producing thoughts come into people's minds in the dark anyway. Don't you pray?

This blind person has learnt to paint without eyesight. You are not handicapped until you think you are.

195 18. VALUES, ATTITUDE AND JOB SATISFACTION

VALUES Values represent basic convictions that a specific mode of conduct or end-state of existence is personally or socially preferable to an opposite or converse mode of conduct or end-state of existence. Values have both content and intensity attributes. The content attributes say that a mode of conduct or end-state of existence is important. The Intensity attribute specifies how important it is. All of us have a hierarchy of values that forms our value system.

Value System Value system is a hierarchy based on a ranking of an individual’s values in term of their intensity. Although values don’t have a direct impact on behavior, an individuals values system can provide insight into his or her attitudes. Values are relatively stable and enduring.

Sources of our value system A significant portion is genetically determined. The rest is attributable to factors like national culture, parental dictates, teachers, friends and similar environmental influences. About 40% of the variation in work values is explained by genetics. A significant portion of the values we hold is established in our early years – from parents, teachers, friends, and others.

Types of values Milton Rokeach created the Rokeach Value Survey (RVS). The RVS consists of two sets of values, with each set containing 18 individual value items. These values are –

1. Terminal Values

This refers to desirable end-states of existence; the goals that a person would like to achieve during his or her life- time.

2. Instrumental Values

196 This refers to preferable modes of behavior or means of achieving one’s terminal values. Terminal and Instrumental values

Terminal Values Instrumental Values

1. A comfortable life 1. Ambitious 2. An exciting life 2. Broad-minded 3. A sense of accomplishment 3. Capable 4. A world of peace 4. Cheerful 5. A world of beauty 5. Clean 6. Equality 6. Courageous 7. Family Security 7. Forgiving 8. Freedom 8. Helpful 9. Happiness 9. Honest 10. Inner Harmony 10. Imaginative 11. Mature Love 11. Independent 12. National security 12. Intellectual 13. Pleasure 13. Logical 14. Salvation 14. Loving 15. Self-respect 15. Obedient 16. Social recognition 16. Polite 17. True friendship 17. Responsible 18. Wisdom 18. Self- Controlled.

ATTITUDES

Attitudes are evaluative statement or judgements concerning objects, people, or events. They reflect how one feels about some thing. What I say “I like my job”, I am expressing my attitude about work. Attitudes are not the same as values, but the two are interrelated. The belief that “discrimination is wrong” is a value statement. Such as opinion is the cognitive component of an attitude.

Source of attitudes Attitudes, like values, are acquired from parents, teachers and peer group members. We are born with certain genetic predisposition. In contrast of values, attitudes are less stable. Advertising massages, for example, attempt to alter your attitudes toward a certain product or service. In organisations, attitudes are important because they affect job behavior.

Type of attitudes

197 Most of the research in organisational behavior has been concerned with three attitudes –

(1) Job Satisfaction

It refers to an individual’s general attitude towards his or her job. A person with a high level of job satisfaction holds positive attitudes toward the job, while a person who is dissatisfied with his or her job holds negative attitudes about the job.

(2) Job Involvement

It measures the degree to which a person identifies with his or her job, actively participates in it, and considers his or her performance important to self worth. Employees with a high level of job involvement strongly identify with and really care about the kind of work they do. High level of job involvement related to fewer absences and lower resignation rates.

(3) Organisational commitment

It measures the degree to which an employee identifies with a particular organisation and its goals, and wishes to maintain membership in the organisation. It is better indicator of turnover than the far more frequently used job satisfaction predictor.

JOB SATISFACTION

The importance of job satisfaction is obvious. Managers should be concerned with the level of job satisfaction in their organisations for at least four reasons:

 There is clear evidence that dissatisfied employees skip work more often and are more likely to resign;

 Dissatisfied workers are more likely to engage in destructive behaviors;

 Satisfied employees have better health and live longer; and

 Satisfaction on the job carries over to the employee’s life outside the job.

Measuring Job Satisfaction

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An employee’s assessment of how satisfied or dissatisfied he or she is with his or her job is a complex. Summation of a number of discrete job elements such as nature of work, supervision, present pay, promotion opportunities, and relations with co-workers.

What determines job satisfaction?

Following are the factors determines job satisfaction: -

1. Mentally challenging work

Employees tend to prefer jobs that give them opportunities to use their skills and abilities and offer a variety of tasks, freedom, and feed-back on how well they are doing.

2. Equitable rewards

Employees prefer physical surroundings that are not dangerous or uncomfortable. Employees prefer working relatively close to home, in clean and relatively modern facilities, and with adequate tools and equipment.

3. Supportive working conditions

Having friendly and supportive co-workers leads to increased job satisfaction. Employee’s satisfaction is increased when the immediate supervisor is understanding and friendly, offer praise for good performance, listen to employee’s opinions, and shows a personal interest in them.

THE EFFECT OF JOB SATISFACTION ON EMPLOYEE’S PERFORMANCE

(1) Satisfaction and productivity

The earlier view can be summarised in the statement that – “A happy worker is a productive worker”. But belief in the happy worker thesis was based on wishful thinking than hard evidence. An employee’s productivity on machine paced jobs, for instance, is going to be much more influenced by the speed of the machine than his or her level of satisfaction…

199 Similarly, a stockbroker’s productivity is largely constrained by the general movement of the stock market. The satisfaction-performance co- relationship to be more relevant for individual in professional, supervisory, and managerial position.

When satisfaction and productivity data are gathered for the organisation as a whole, rather than at the individual level, we find that organisation with more satisfied employees tended to be more effective than organisation with less satisfied employees.

(2) Satisfaction and absenteeism

There is a consistent negative relationship between satisfaction and absenteeism. The workers with high satisfaction score much higher attendance than those with lower satisfaction levels.

(3) Satisfaction and turnover

Satisfaction- turnover relationship is the employee’s level of performance. Specifically, level of dissatisfaction is less important in predicting turnover for superior performers.

How employees can express dissatisfaction

Voice Actively and constructively attempt to improve condition including suggesting improvements.

Loyalty Passively and optimistically waiting for conditions to improve, including speaking up for the organisation in the face of external criticism.

Neglect Passively allowing conditions to worsen, including chronic absenteeism or lateness, reduced effort, and increased error rate.

200 7 Basic Rules Towards Acquiring A Positive Attitude.

1. Treat every person with whom you come into contact as the most important person on earth. 2. If your attitude is not right, nothing else is right and you have to lose even before you start. 3. The human mind can hold only one thought at a time promi9nently. Since there is nothing to be gained by being negative, be positive. 4. The deepest craving of human beings is to be needed, to feel important, to be appreciated. Give it to them and they will return it to you. 5. You can learn something from everybody. 6. Don't waste your time broadcasting personal problems. 7. Do not talk about your health unless it is good.

3 Fundamental Techniques in Handling People 1. Don't criticize, condemn or complain. 2. Give honest and sincere appreciation. 3. Arouse in the other person an eager want.

6 Ways to Make People Like You 1. Become genuinely interested in other people. 2. Smile. 3. Remember that a person's name is to that person the sweetest and most important sound in any language. 4. Be a good listener. Encourage other to talk about themselves. 5. Talk in terms of the other person's interests. 6. Make the other person feel important-and do it sincerely.

Ten Rules for Getting Along with People 1. Keep your tongue under control and watch your body language. 2. Make few promises but keep them. 3. Learn to praise and criticize constructively. 4. Empathize-be interested in others. 5. Be cheerful. Worried, pains and disappointments- do not let them wipe off your smile. 6. Present for yourself and open mind. Discuss: do not argue. 7. Let your merits speak for themselves; do not talk about other's demerits unless necessary. 8. Pay no attention to ill-natured remarks made about you. 9. Treat everybody with importance and never laugh at others' expense.

201 10. Do not be anxious about getting what is due to you. Keep a good disposition; efforts and rewards will come to you.

The SIX most important words: "I ADMIT I MADE A MISTAKE" The FIVE most important words: "YOU DID A GOOD JOB" The FOUR most important words: "WHAT IS YOUR OPINION?" The THREE most important words: "IF YOU PLEASE" The TWO most important words: "THANK YOU" The ONE most important word: "WE" The LEAST important words: "I"

WINNERS VS LOSERS The winner is a part of the answer; The loser is always a part of the problem. The winner always has a plan; The loser always has an excuse. The winner says, “Let me do it for you; The loser says, “That’s not my job. The winner sees an answer in every problem; The loser sees a problem in every answer. The winner sees a green near every sand trap; The loser sees a sand trap near every green. The winner says, “It may be difficult but it’s possible”; The Loser says, “ It may be possible but it’s difficult’.

BE A WINNER

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