Master Circular No. 03: Railway Institutes/ Clubs

No.E(W)2019/IC-1/2, dated 27.08.2019

1. At present the orders relating to Railway Institutes/ Clubs are compiled in Master Circular No.3/1990 issued under letter No.E(W)90/IS-1/3, dated 07.09.1990. It contained salient features and instructions issued by Railway Board from time to time on the subject. Since then, a number of instructions have been issued in the form of supplementary instructions to the Master Circular. The question of consolidation of these existing orders/ circulars into an updated Master circular has been under the consideration of the Ministry of Railways (Railway Board). It has now been decided to issue a consolidated Revised Master Circular on the subject for the information and guidance of all concerned.
2. The Railway Administrations provide, as part of staff amenity, Institutes/ Clubs to promote esprit de corps among Railway employees and also to encourage them to participate in sports, cultural programmes, etc. As such, a Railway Institute/ Clubs should be looked upon as a club provided by the Railway, rent-free for the benefit of its employees. As a principle, therefore the Railway Administrations should provide everything which a landlord ordinarily would and the Institutes/ Clubs should pay for all that a tenant would usually be liable.
3. The Railway Administration will bear:-

(i) The first cost of the building including the cost of electric installations (including electric fans) with necessary furniture, roads, fences, tennis courts and other playgrounds. Wherever possible, a garden will also be provided.
Note: The term “Furniture” is not intended to include billiards, table, pianos and pictures. It includes lamps, other than billiards table lamps and locks and keys of almirahs.
(ii) The cost of maintenance and alterations except in the case of tennis courts and other playgrounds, the Railway Administration will bear only the cost of ordinary Engineering repairs.

4. The Railway institutes/ clubs funds will bear:-

(a) The cost of rolling, watering, grass-cutting and other maintenance charges of playgrounds, other than engineering repairs;
(b) The cost of maintenance of its gardens and ornamental grounds;
(c) The cost of maintenance and renewal, whether partial or complete, of electrical installations including fans payable at a flat rate of Rs.5 per annum on the capital cost of the installations;
(d) The cost of electric current consumed and hire of meter;
(e) Occupiers’ share of Municipal taxes for specific direct services rendered to an Institute by a Municipality such as conservancy, water and the like taxes as distinct from taxes of general nature;
(f) Water charges calculated at so much per tap, each Railway administration fixing is own rate of charges.
Note: In case where large quantities of water are supplied as in case of swimming pools, the actual cost of water supplied should be recovered. However, in cases where waste water from the swimming pools is utilized for definite railway purposes, e.g. flushing of sewers and watering of grounds, etc. no charges for supply of water of swimming pools should be recovered.

5. No rent is recoverable in the case of Railway Institutes/ Clubs where the building is erected by the Institute/ Club at its cost on Railway land. Also, no rent is recoverable in the case of Institutes/ Clubs:-

(i) If the buildings are specifically constructed after obtaining the sanction from the Railway Board;
(ii) If any additional expenditure is incurred in converting an existing building into a club/ Institute or providing ancillaries to make it suitable as an Institute/ Club had the prior approval of the Railway Board.

6. The class-IV Staff employed in Railway Institutes/ Clubs may be given residential accommodation free of rent provided that such accommodation is either part and parcel of the Institute building and its recognized out-houses, or is not required for any other railway purpose or cannot be rented to outsiders and would otherwise lie vacant.

[Ref: Paras 2211 of IREM, Vol-II (Revised edition – 1990)]

7. The General Manager of the Railways may frame rules to suit local requirements of the Railway Administration and other circumstances of the place. While laying rules for use of Railway premises/ Institutes/ Clubs etc., among other things specific mention of the following must be made:-

(i) The holding of meeting on railway land by recognized unions – no political subject be discussed in the meeting.
(ii) Prohibiting the grant of permission to unrecognized unions for holding their meeting on Railway land/ premises.
(iii) Restriction on the use of any railway land for holding election meetings and/or public meeting.

[Ref: 2217 of IREM, Volume II (Revised edition – 1990)]

8. The grant under SBF is meant for recreation facilities for both Officers and Supervisory Staff, it may please be ensured that a portion of this grant is made available to the Institutes for recreation of the supervisory staff also, on the scale decided by the GMs, taking into account the local conditions.

[Railway Board’s letter No.E(W)99/IS-1/3, dated 04.04.2000]

It is further clarified that the Grants available under Staff Benefit Fund (SBF) for the head/ activity “Recreational facility at Institutes and Clubs, etc. can be utilized for Officer’s Club as well.”

[Railway Board’s letter No.E(W)2006/FU-1/5(Pt), dated 06.10.2018]

It has also been decided that only 3 rates for hiring Club premises should be laid down:-
One for the members, the other non-member Officers and Supervisors and the third one for Outsiders. The rates charged from Supervisors should be less than the rates charged from the outsiders and more than the rates charged from the members. There should be no difference in the rates charged from non-member Officers and non-member supervisors.

[Railway Board’s letter No.E(W)99/IS-1/3, dated 04.04.2000]

9. Use of Railway Institute/ Club premises by outsiders for private functions:-
The Club/ Institutes premises are accordingly offered for private functions by Members, etc. Instructions also exists regarding use of club/ Institute premises by unions and outsiders for cultural shows and for cinema shows etc. Certain conditions, have, however, been laid down by Board with regard to holding the private functions.

[Railway Board’s letter No.63/W2/CNB, dated 07.02.1967 and 01.05.1967,
No.78/W2/3/66, dated 10.08.1979;
No.E(W)86-ISI-2, dated 03.06.1986 (RBE No. 105/1986) and
No.E(W)99/IS-1/3, dated 04.04.2000]

9.2 The absolute ownership of the property being that of the Railways, needless to say that the premises cannot be leased out by the Club/ Institute management to anybody. However, Railways have been permitting outsiders for holding private functions in the Club/ Institutes after meeting demands from members and Non-member officer/ staff, not amounting to leasing out the premises. In one of the cases in recent past, managing committee of an officers’ club entered into an agreement with a contractor regarding use of club premises for commercial gains for a period upto 20 years without prior approval of competent authority, in violation of Board’s extant instructions which stipulates that licensing of railway land for purposes not connected with railway working is not permitted.

[Railway Board’s letter No.2004/LML/18/116, dated 27.10.2004]

9.3 It may please be ensured by Zonal Railways that bye laws of their Clubs/ Institutes must be in line with the extant instructions issued from time to time with regard to running the affairs of the Clubs/ Institutes, lease/ use of railway land etc.
9.4 Following aspects may also be kept in view and suitable provisions be incorporated in the bye laws:-

(a) Use of Club/ Institute premises by a person for private functions should generally be restricted for one day only, and charges for the same will be on “per day basis”.
(b) In case of outsiders, permission to use Club/ Institute premises shall be given by the Club/ Institute directly to the individual for private purpose only and not for any commercial interest/ gains.
(c) No third party or contractor shall be authorized to take possession of the premises for further allotment.
(d) Club/ Institute management will specify conditions regarding proper use of premises but will not involve themselves with catering/ shamiana arrangement, etc. for allottee. Allottee will himself make necessary arrangements for catering/ shamiana etc.
(e) Allottee shall be held personally responsible for any damages caused to the Club/ Institute property.
(f) Hire charges for use of Club/ Institute premises by outsider should be fixed by the Committee in keeping with comparable facilities available in the market, etc.
(g) Gambling, consumption of liquor and other unlawful activities should be prohibited.
(h) The programme of performance, etc. must be intimated to the Secretary of the Club/ Institute beforehand whose discretion in allowing or refusing permission would be final.
(i) Club/ Institute management shall not specify any condition or enter into any arrangement with anyone which directly or indirectly, amounts to seizure of Railway’s authority as owner of the premises/ Railway land and is likely to affect Railway’s interest in any way and shall always take steps to protect Railways’ interests.
(j) Caution money may be charged from the allottee for use of the premises and handing over the premises back to the Railways intact. In the event of damages caused to the railway property by the allottee, the caution money may be suitably adjusted for compensating the damages. The amount of caution money may be fixed taking local conditions into account.

[Railway Board letter No.E(W)2004/IS-1/2, dated 12.10.2006]

10. The membership of the Institute/ club is optional. The running of the Institute/ clubs are to be managed by a Committee, representing its members. The Committee engage such staff as are required and meet the cost of their wages and allowances. The cost of running the Institutes/ clubs is met from funds at the disposal of the Institutes Management Committee derived from membership fees and grants from the Staff Benefit Fund. In view of the limited funds available at the disposal of the Managing Committee, they should employee only part-time workers and the whole-time workers should be engaged only when absolutely necessary in which case there should be paid adequate wages in accordance with such market conditions.

[Nos. E(W)86-ISI, dated 21.01.1987,
E(W)80-ISI, dated Oct, 1980, and
E.55.LRIG, dated 25.04.1956]

11. The whole-time staff of the Railways Institutes may also be issued Complementary ‘Admn’ Check Passes as per ACS No.17 to the Railway Servants (Pass) Rules, 1986 (2nd edition, 1993)

[Railway Board’s letter No.E(W)97PS5-1/45, dated 28 10 1999]

11.1 Pass facility to non-Railway Servants will be governed by the instructions No.E(W)2019/PS5-1/5, dated 03.06.2019.

[Railway Board letter No.E(W)2019/PS5-1/5, dated 03.06.2019]

12. Since the staff of the Institutes/ clubs are not regular Railway servants, the Managing Committee should add a suitable clause to this effect while giving offer of appointment to the entrant in their employ. Existing staff should also be suitably advised of this. In this connection, the Supreme Court in their recent judgment in Civil Writ No.1389 of 1987 dated 27.02.1990 upheld the contention of the Ministry of Railways (Railway Board) that the staff employed by the Railway Institutes/ Clubs are not regular Railway servants and hence dismissed the petition.

[No.E(W)86ISI-1, dated 21.01.1987 and
E(W)87ISI-12, dated 30.04.1990]

13. The following procedure should be followed by all the Railway in the matter of giving permission to recognized unions for holding meetings in Railway Institutes/ clubs:-

(i) Prior permission of the Railway would be necessary before the Railway institutes/ clubs could be used.
(ii) The request for permission should reach the Administration at least 3 days before the meeting is sought to be held.
(iii) No political subject would be discussed in the meeting but the Railway Administration would not insist for a copy of the agenda.
(iv) In addition to obtaining permission from the Railway Administration, the responsibility for obtaining permission from the civil authorities or the Managing Committee of the Institute/ clubs, whenever necessary, would be with the trade union concerned.
(v) The time and date of the meeting should also be intimated by the Union while applying for permission.
The Railway Administration should ensure that granting or refusing permission are issued promptly to the Unions. Permission cannot be given to use Railway Land/ premises by the unrecognized unions for holding meetings etc.
(vi) There would be a ban on the use of railway premises for any religious function except that the functions for which permission had been given in the past for being held in a particular railway premises would be allowed as hithertofore.
It is desirable that specific mention is made by the Railway Administration in their local Rules framed with regard to running of the Railway Institutes/ clubs on the above aspect.

[Nos.E(L)60UT1-33, dated 09.02.1960,
E(LR)III-80UT3/23, dated 08.05.1980,
E(W)86-ISI-2, dated 03.06.1986, and
E(W)87-SC-2/13, dated 20.01.1988]

14. It has been decided that where direct recruitment to Group “D” posts is made from the open market in the Workshops or in Electrical/ Diesel Loco Sheds, as permissible under extant instructions, persons employed in Railway/ Institutes attached independently to a Workshop (not to the Division) may apply direct provided they possess the educational qualification prescribed for the said direct recruitment. Applications of such persons can be considered by the Railway Administration along with other applications. Such candidates can also be allowed age concession to the extent of five years or service rendered in the Institutes, whichever is less for absorption in Class-IV categories and appearing before Railway Recruitment Board for selection to Class-III categories.

[Nos.E(NG)III73-RR1-27, dated 30.10.1973 and
E(NG)II/87-RR4/5, dated 23.08.1988 (RBE No. 191/1988)]

15. The Railway Board have no objection to the checking of Institutes/ clubs Accounts being done by selected Accounts Staff outside their office hours on payment of a fee from the Institutes/ clubs fund.
16. It is to be noted that the staff engaged by the Institutes and Clubs are not Railway servants as they are engaged by respective management committee etc. of such Institute & Clubs. Wherever, such Non-Railway staff are covered by applicable labour laws pertaining to minimum wages, it is desirable that they should be paid minimum wages.

[No.E(W)2018/E(LL)MW/4, dated 26.04.2019]

17. General:

(a) The consolidation made in the Master Circular should be construed only as a key to the original circular and not a substitution. In case of any doubt, the original circular(s) referred to in the Master Circular will be relied upon as authority.
(b) It should be noted that orders/ instructions issued under the various circulars have only prospective effect from the date of issue of the relevant original letter(s). Unless specifically stated otherwise in the concerned letter. Hence, for dealing with old cases, the instructions in force at the relevant time have to be referred.
(c) Though all efforts have been taken to include all the relevant circulars on the subject, if any circular which has not been superseded happens to be omitted, the circular which has been omitted through oversight will still hold the field. Anyone coming across such a circular may bring it to the notice of the Railway Board for suitable action for issuing a supplementary circular.

Please acknowledge receipt.

List of Important Railway Board Circulars on Railway Institutes/Clubs

Download Master Circular No.03

Forward reference ⇒ RBE No.