IREC Rule No.913: Commercial Employment By Railway Officers After Retirement

913.  Commercial Employment By Railway Officers After Retirement:- 

(a) Every non-pensionable Railway officer shall, before he takes up commercial employment at any time before the expiry of two years from the date of his retirement, obtain the prior permission of the Ministry of Railways;

Provided that, no such prior permission is required in cases where such an officer was permitted by the Ministry of Railways to take up a particular commercial employment during his leave preparatory to retirement.

(b)   If a non-pensionable Railway officer desires to take up commercial employment before the expiry of two years from the date of his retirement, he shall apply for permission in the prescribed form (enclosed Annexure-1) to the Secretary, Railway Board through the General Manager of the Railway where he had served before retirement.

Annexure-1
Form of Application for Permission to accept Commercial Employment within a period of Two years after retirement:-
1	Name of the Officer(In block letters)
2	Date a of retirement
3	Particulars of the Ministry/Development/office in which the officer served during the last    five years preceding retirement (with duration)
	Name of Ministry/ Department/ Office	Post Held	From	To
4	Pay scale of the post and the pay drawn by the officer at the time of retirement
5	Government contribution to Contributory Provident Fund (if the amount has not been sanctioned so far, mention the estimated amount)
6	Details regarding commercial employment Proposed to be taken up
a	Name of the firm/Company/Cooperative Society, etc
b	Whether the official had during his official career any dealings with the firm /Company /Cooperative Society, etc. or any other firm to which the firm is subordinate or any other firm which is subordinate to the firm in question
c	Duration and nature of the official dealings with the firm
d	Name of job / post offered
e	Whether the post was advertised, if not, how was the offer made
f	Description of the duties of the job/post
g	Does it involve liaison/ contact work with Government department
h	Remuneration offered for the post / job
i	Station / place of posting of the proposed Commercial employment
7	Any information which the applicant desires to furnish in support of his request
Station:
Date:		Signature of the officer

 

(c)   ‘Railway Officer‘ means a subscriber to, or depositor, in the state Railway Provident Fund (Contributory) constituted by the Ministry of Railways, who, immediately before his retirement is a member of a Railway Service Group ‘A’ but does not include an officer appointed under a contract of service for a specified term.

2. (a)  ‘Commercial employment‘ would mean employment in any capacity (including that of an agent) under any company, co-operative society, firm individual engaged in trading, commercial, industrial, financial or professional business and includes also;

(i)      A directorship of a company;

(ii)     The holding of any officer, whether elective or otherwise, such as that of president, chairman, manager, secretary, treasurer, by whatever name called in a co-operative society and

(iii)     The setting up of practice, either independently or as partner of a firm, as adviser or consultant in matters in respect of which the non-pensionable Railway officer;

(a)          Has no professional qualification, but the matters in respect of which such as  practice is to be set up or is carried on are related to his official knowledge  or experience,

(b)   Has professional qualifications, but the matters in respect of which such  practice is to be set up are such as are likely to give his clients an unfair  advantage by reason of the posts held by him under the Central Government, or

(c)   Has to undertake work involving liaison or contact with the offices or  officers of Central Government (including Railways) but does not include  employment in or under a corporation or company wholly or substantially owned or controlled by Government or employment in or under a body controlled or financed wholly or substantially by Government.

(b) ‘Government Contributions’ means contributions made after the commencement of the Provident Funds (Amendment) Act, 1975. In this case it would be from 01.02.1977.

3. (a)   No Railway officer shall have any right to the Government Contributions made to his credit in a contributory provident fund in any case where he takes up commercial employment at any time before the expiry of two years from the date of his retirement without the prior permission of the Central, Government (Ministry of Railways).

(b) If any non-pensionable Railway officer takes up any commercial employment at any time before the expiry of two years from the date of his retirement without the prior permission of the Central Government (Ministry of Railways) or commits a breach of any condition subject to which permission to take up any commercial employment has been granted to him it shall be competent for the Central Government (Ministry of Railways ) to declare by order in writing and for reasons to be recorded therein that he shall not be entitled to such part of the Government Contributions made in relation to such officer as may be specified in the order and if he has received payment thereof, to direct that he shall refund to the Central Government (Ministry of Railways) an amount equivalent to such part of the Government contributions;

              Provided that no such order shall be made without giving the officer concerned an opportunity of showing cause against such declaration or direction;

Provided further that in making any order under this Rule the Central Government (Ministry of Railways) shall have regard to the following factors, Viz.

(i)    The financial circumstances of the officer concerned;

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

(iii)   The exceptional circumstances, if any, which would cause a hardship to the person concerned in case the permission is refused;

(iv)   Such other relevant factors as may be prescribed.

Explanation: For the purpose of this Rule, the ‘date of retirement’ in relation to a non-pensionable Railway officer re-employed after retirement without any break either in the same or any other Group ‘A’ post under the Central Government or any other equivalent post under a State Government shall mean the date on which such Railway Officer finally ceases to be re-employed in Government service.

4. Any amount required to be refunded by an order under this Rule may, if it is not refunded within the prescribed period, be recovered as arrears of land revenue.
5. The Central Government (Ministry of Railways) may, by order in writing, on an application made in the prescribed form by a non-pensionable Railway Officer, grant, subject to such conditions, if any, as it may deem necessary, permission, or refuse, for reasons to be recorded in the order, permission, to such officer to take up the commercial employment specified in the application.
6. While granting or refusing permission to the non-pensionable Railway officer for taking up any commercial employment, the Central Government (Ministry of Railways) should also have regard to the following factors:-

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

(b)  Whether his duties in the employment which he proposes to  take up might be  such as to bring him into conflict with Government;

(c)  Whether the officer while in service had any such dealing with the employer under whom he proposes to seek employment as might afford reasonable basis for the suspicion that such officer had shown favors to such employer;

(d)  Whether the proposed employment would involve liaison or contact with Central Government Departments;

(e)  Whether the duties under the proposed employment are likely to give his employer an unfair advantage by reason of the posts held by him under the Central Government;

(f)   The emoluments offered by the proposed employer;

(g)  The exceptional circumstances, if any, which would cause a real hardship to the person concerned in case the permission is refused; 

(h)  Any other relevant factors which may be prescribed.

7. Where the Central Government (Ministry of Railways) grants the permission applied for subject to any conditions or refuses such permission, the applicant may, within thirty days of the receipt of the order of the Central Government (Ministry of Railways) to that effect, make a representation against any such condition or refusal and the Central Government (Ministry of Railways) make such orders thereon as it deems fit;

Provided that no order other than an order cancelling such condition or granting such permission without any condition shall be made under this Rule without giving the person making the representation an opportunity to show cause against the order proposed to be made.

8. Every order passed by the Central Government (Ministry of Railways) under this rule shall be communicated to the officer concerned.
9. Period for refunding Government Contribution: Any amounts required to be refunded by an order under this rule shall be refunded by the person concerned within a period of three months from the date of receipt of such order by him.

[Authority: No.E(G)77 EM-1/5, 22.09.1977]