CONDUCT, DISCIPLINE AND APPEAL RULES

[Link]. Content

1. Short title and Commencement

2. Applications

3. Definitions

4. General

5. Misconduct

6. No employment of new relatives of the employees in any company or firm enjoying patronage of the Corporation.

7. Taking part in politics and elections

8. No participation in demonstrations

9. No connection with press, radio or TV

10. No criticism of Government and the Corporation

11. No evidence before committee or any other authority

12. Unauthorized communication of information

13. Gifts

14. Giving or taking dowry

15. No Public demonstration

16. No private trade/employment/collection of subscription for contribution

17. No investment, lending and borrowing

18. Insolvency and avoidance of habitual indebtedness

19. Movable, Immovable and valuable property

20. No renting out of house to a foreigner by employees

21. No canvassing of non-official or other influences

22. Bigamous marriages

23. No consumption of intoxicating drinks & drugs

24. Observance of small family norms

25. Suspension

26. Payment of subsistence allowance

27. Treatment of period of suspension

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28. Penalties

29. Imposition of penalties

30. Procedure for imposing major penalties

31. Action of the inquiry report

32. Procedure for imposing minor penalties

33. Communication of orders awarding penalties

34. Common proceedings

35. Special procedure in case of conviction for improving penalties

36. Disciplinary proceedings against employees on deputation

37. Procedure for disciplinary action in r/o employees lent to other organisations

38. Appeals

39. Review

40. Service of notices, orders etc.

41. Powers for relaxation of time limit and condonation of delay

42. Vindication of acts

43. Savings

44. Disciplinary authority/competent authority

45. Removal of doubts/interpretation

46. Amendments

47. Residual Powers

48. Repeal

Annexure I : Schedule of Disciplinary/Appellate/Reviewing Authority

Annexure II: Extract from Indian Companies Act, 1956

Annexure III: Property Return Forms

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1.0 SHORT TITLE AND COMMENCEMENT

These Rules shall be called Power Finance Corporation (Conduct, Discipline and Appeal) Rules
and shall come into force with effect from the date of notification.

2.0 APPLICATION

These Rules shall apply to all employees of Power Finance Corporation Limited and its wholly
owned subsidiaries except those in casual employment or paid from contingencies.

(Modification approved by BoD in its 447th meeting held on 08.11.2023 and notified vide HR Circular No
08/2023 dated 15.12.2023; effective from 08.11.2023)

3.0 DEFINITION

In these Rules unless the context otherwise requires:

3.1 APPOINTING AUTHORITY means (i) the authority empowered to make appointments to the
cadre/discipline of which the employee is for the time being a member or to the pay-scale of the
cadre/discipline in which the employee is for the time being included; or to the authority
empowered to make appointments to the post which the employee for the time being holds, or (ii)
the authority which appoints the employee to such cadre/discipline, grade or post, as the case may
be. The Appointing Authority as on date is indicated in the schedule to these Rules.

3.2 APPELLATE AUTHORITY means the authority specified in the Scheduled appended to these
rules.

(Approved by BoD in its 447th meeting held on 08.11.2023 and notified vide HR Circular No 08/2023 dated
15.12.2023; effective from 08.11.2023)

3.3 BOARD means the Board of Directors of the PFC and includes in relation to the exercise of
powers, any committee of the Board/ management or any officer of the CPSE to whom the Board
delegates any of its powers.

(Approved by BoD in its 447th meeting held on 08.11.2023 and notified vide HR Circular No 08/2023 dated
15.12.2023; effective from 08.11.2023)

3.4 CHAIRMAN & MANAGING DIRECTOR means the Chairman and Managing Director of the
Corporation.

3.5 COMPETENT AUTHORITY means the disciplinary authority or any other authority empowered
by the Board of Directors by any general or special order or rule to discharge the functions or use
the powers specified in these rules or order.

3.6 CORPORATION means the Power Finance Corporation Limited.

3.7 DISCIPLINARY AUTHORITY Disciplinary Authority means the authority specified in the
Schedule appended to these rules and competent to impose any of the penalties specified in Rule

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 28. (Approved by BoD in its 447th meeting held on 08.11.2023 and notified vide HR Circular No 08/2023
dated 15.12.2023; effective from 08.11.2023)

3.8 EMPLOYEE means a person in the employment of the Corporation including a trainee and a
person employed on deputation/Foreign Service but excludes casual employee or staff paid from
contingencies.

3.9 FAMILY in relation to an employee includes:

3.9.1 The wife or husband, as the case may be, of the employee whether residing with him or not, but
does not include a wife or husband, as the case may be, separated from the employee by a decree
or order of a competent court.

3.9.2 Children, step-children and legally adopted children, wholly dependent on the employee, but does
not include a child or a step-child who is no longer in any way dependent on the employee or of
whose custody the employee has been deprived by or under any law.

3.9.3 Any other person related, whether by blood or marriage to the employee or to such employee’s
wife or husband and wholly dependent on such employee and residing with him.

3.10 GOVERNMENT means the ‘Government of India’ or ‘State Government’ as the case may be.

3.10.1 GOVERNMENT SERVANT means a person who is a member of a service or who holds a civil
post under the Union or State Government and includes any such person on foreign
service/deputation.

3.11 PUBLIC SERVANT shall mean and include a person as mentioned in Section 21 of Indian Penal
Code as amended from time to time.

3.12 REVIEWING AUTHORITY means the authority specified in the Schedule appended to these
rules.

(Approved by BoD in its 447th meeting held on 08.11.2023 and notified vide HR Circular No 08/2023 dated
15.12.2023; effective from 08.11.2023)

3.13 SCHEDULE means the schedule to these rules.

3.14 NEAR RELATIVES: A person shall be deemed to be a relative of another, if, and only if,-

a. they are members of a Hindu Undivided Family; or

b. they are husband and wife; or

c. the one is related to the other in the manner indicated in Schedule "I-A" of Indian Companies
Act 1956, (relevant extract enclosed).

(Clause Modified by BoD and notified vide Circular No. 165/2000 dated 31st July 2000)

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4.0 GENERAL

4.1 Every employee of the Corporation shall at all times :

4.1.1 Maintain absolute integrity;

4.1.2 Maintain devotion to duty;

4.1.3 Shall be presentably dressed and shall behave with courtesy, uniform /dress code be adhered to,
whenever prescribed; and

4.1.4 Do nothing which is unbecoming of an employee of the Corporation and conduct himself at all times
in a manner which will enhance the reputation of the Corporation.

4.1.5 Commit oneself to and uphold the supremacy of the Constitution and democratic values;

4.1.6 Defend and uphold the sovereignty and integrity of India, the security of the State, public order,
decency and morality;

4.1.7 Maintain high ethical standards and honesty;

4.1.8 Maintain political neutrality;

4.1.10 Promote the principles of merit, fairness and impartiality in the discharge of duties;

4.1.11 Maintain accountability and transparency;

4.1.12 Maintain responsiveness to the public, particularly to the weaker section;

4.1.13 Maintain courtesy and good behavior with the public;

4.1.14 Take decisions solely in public interest and use or cause to use public resources efficiently,
effectively and economically;

4.1.15 Declare any private interests relating to the Employee’s public duties and take steps to resolve any
conflicts in a way that protects the public interest;

4.1.16 Not place oneself under any financial or other obligations to any individual or organization which
may influence the employee in the performance of one’s official duties;

4.1.17 Not misuse one’s position as public servant and not take decisions in order to derive financial or
material benefits for oneself, one’s family or one’s friends;

4.1.18 Make choices, take decisions and make recommendations on merit alone;

4.1.19 Act with fairness and impartiality and not discriminate against anyone, particularly the poor and
the under-privileged sections of society;

4.1.20 Refrain from doing anything which is or may be contrary to any law, rules, regulations and
established practices;

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4.1.21 Maintain discipline in the discharge of one’s duties and be liable to implement the lawful orders
duly communicated to the employee;

4.1.22 Maintain confidentiality in the performance of one’s official duties as required by any laws for
the time being in force, particularly with regard to information, disclosure of which may
prejudicially affect the sovereignty and integrity of India, the security of the State, strategic,
scientific or economic interests of the State, friendly relation with foreign countries or lead to
incitement of an offence or illegal or unlawful gain to any person;

4.1.23 Perform and discharge one’s duties with the highest degree of professionalism and dedication to
the best of his/her abilities.

4.2.1 Every employee of the Corporation holding a supervisory / managerial post shall take all possible
steps to ensure the integrity and devotion to duty of all employees for the time being under his/her
control and authority.

4.2.2 No Employee shall, in the performance of his/her official duties, or in the exercise of powers conferred
on the employee, act otherwise than in his/her best judgement except when employee is acting under
the direction of his/her official superior;

4.2.3 The direction of the official superior shall ordinarily be in writing. Oral direction to subordinates shall
be avoided, as far as possible. Where the issue of oral direction becomes unavoidable, the official
superior shall confirm it in writing immediately thereafter;

4.2.3 An employee who has received oral direction from his/her official superior shall seek confirmation of
the same in writing as early as possible, whereupon it shall be the duty of the official superior to
confirm the direction in writing.

Explanation I.- An employee who habitually fails to perform the task assigned to the employee within the
time set for the purpose and with the quality of performance expected of the employee shall be deemed to
be lacking in devotion to duty within the meaning the clause 4.1.2

Explanation II.- Nothing in clause 4.2.2 shall be construed as empowering an Employee to evade his/her
responsibilities by seeking instructions from, or approval of, a superior officer or authority when such
instructions are not necessary under the scheme of distribution of powers and responsibilities.

4.3 . Promptness and Courtesy:

No Employee shall

4.3.1 in the performance of his/her official duties, act in a discourteous manner;

4.3.2 in his/her official dealings with the public or otherwise adopt dilatory tactics or willfully cause
delays in disposal of the work assigned to him/her.

4.4 Observance of Government's policies

Every Employee shall, at all times-

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4.4.1 Act in accordance with the Government's policies regarding age of marriage, preservation of
environment, protection of wildlife and cultural heritage;

4.4.2 Observe the Government's policies regarding prevention of crime against women.

(Modifications approved by BoD in its 447th meeting held on 08.11.2023 and notified vide HR Circular No
08/2023 dated 15.12.2023; effective from 08.11.2023)

5.0 MISCONDUCT

Without prejudice to the generality of the term, Misconduct, the following acts of omission and
commission shall also be treated as misconduct:

5.1 Theft, fraud or dishonesty in connection with the business or property of another person within the
premises of the Corporation.

5.2 Taking or giving bribes or any other illegal gratification.

5.3 Possession of pecuniary resources or property disproportionate to the known sources of income by
the employee or on his behalf by another person, which the employee cannot satisfactorily account
for.

5.4 Furnishing false information regarding name, age, father’s name, qualification or previous service
or any other matter germane to the employment at the time of employment or during the course of
employment.

5.5 Acting in a manner prejudicial to the interest of the Corporation.

5.6 Willful insubordination or disobedience, whether or not in combination with others, of any lawful
and reasonable order of his superiors.

5.7 Absence without authorized leave or overstaying the sanctioned leave for more than four
consecutive days without sufficient grounds or proper or satisfactory explanation.

5.8 Habitual late or irregular attendance.

5.9 Neglect of work or negligence in the performance of duty including malingering or slowing down
of work.

5.10 Damage of any property of the Corporation.

5.11 Interference or tampering with any safety devices installed in or around the premises of the
Corporation.

5.12 Drunkenness or riotous or disorderly or indecent behaviour in the premises of the Corporation or
outside such premises where such behaviour is related to or connected with the employment.

5.13 Gambling within the premises of the Corporation.

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5.14 Smoking within the premises of the Corporation where it is prohibited.

5.15 Collection without the permission of the competent authority or any money within the premises of
the Corporation except as sanctioned by any law of the land for the time being in force or rules of
the Corporation.

5.16 Sleeping while on duty.

5.17 Commission of any act which amounts to a criminal offence involving moral turpitude.

5.18 Absence from the employee’s appointed place without permission or sufficient cause.

5.19 Purchasing properties, machinery, stores etc. from or selling properties, machinery, stores etc. to
the Corporation without the express permission in writing from the authority competent to accord
such permission under the relevant rules.

5.20 Commission of any act subversive of discipline or of good behavior.

5.21 Abetment or attempt of abetment of any act which amounts to misconduct.

5.22 Unauthorized use or occupation of the Corporation’s quarter, land or other property.

5.23 Assaulting or intimidating any employee of the Corporation.

5.24 Striking work or inciting others to strike work in contravention of the provisions of any law or rule
having the force of law.

5.25 Breach of any law applicable to the work or of these Rules or any other rules or orders issued by
the Corporation from time to time.

5.26 Writing of anonymous letters etc. addressing appeals or representations or sending their advance
copies to an authority other than the appellate or the appropriate authority.

5.27 Distribution or exhibition in the Corporation’s premises or its precincts, handbills, pamphlets,
posters or causing to be displayed by means of signs or writing or other visible representations, any
matter, without the previous sanction of the authority competent to accord such permission under
the relevant rules.

5.28 Refusal of work on holidays or Sundays or extra hours when notified to do so in the exigencies of
Corporation’s work.

5.29 Gherao, coercion, intimidation, wrongful confinement or use of force or forcibly detaining any
of the company’s employees or shouting/ use of defamatory or disrespectful statement/ slogans
in the company’s premises.

5.30 Taking any active part in a meeting or demonstration organized by a political party.

5.31 Forwarding of application for outside employment, award of fellowships etc. without prior
approval of the authority competent to accord such permission under the relevant rules.
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5.32 Conviction by a Criminal court.

5.33 Destroying, cancelling or altering or causing others to destroy, cancel or alter confidential
computer programme including computer command, design and layout, computer system and
computer network, etc.

5.34 Obtaining advertisements/ sponsorship etc. by the associations/ NGOs formed by either
employees or their spouse / family members etc. from contractors, vendors, customers or other
persons having commercial relationship / official dealing with the Company.

5.34 Making false allegations against another employee/ key officials/Company’s Directors/CMD.
Use of insolent or impertinent or unparliamentarily language in any official
dealing/correspondence or in any representation including appeal or in any forum/ meeting.

5.35 Engaging in trade of any kind on or within the premises of the Corporation.

5.36 Engaging in any civil, political or trade union activities during working hours except to the extent
permitted by the Competent Authority.

5.37 Refusal to accept any order or notice or official correspondence communicated in writing.

5.38 Violation of Code of Practices & Procedures for Fair Disclosure of Unpublished Price Sensitive
Information and Conduct for Regulating, Monitoring & Reporting of Trading in the Securities
of Power Finance Corporation Limited.

5.39 Violation of any other provision (other than prescribed under Clause 5) of PFC CDA Rules.

(Modifications approved by BoD in its 447th meeting held on 08.11.2023 and notified vide HR Circular No
08/2023 dated 15.12.2023; effective from 08.11.2023)

5.40 No employee shall indulge in any act of sexual harassment of any women at her work place.

(Approved by BoD as notified vide DPE OM No.: 2(15)/2007-DPE dated 20th March 2007)

NOTE :- The above instances of misconduct are illustrative in nature, and are not exhaustive.

6.0 EMPLOYMENT OF NEAR RELATIVES OF THE EMPLOYEES OF THE

CORPORATION IN ANY COMPANY OR FIRM ENJOYING PATRONAGE OF THE
CORPORATION

6.1 No employee shall use his/her position or influence directly or indirectly to secure employment to
any person related, whether by blood or marriage to the employee or to the employee’s wife or
husband, whether such a person is dependent on the employee or not.

6.2 No employee shall, except with the prior sanction of the competent authority, permit his son,
daughter or any member of his family to accept employment with any company or firm with which
he or she has official dealings, or with any other firm having official dealings with the Corporation.

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 Provided that where the acceptance of the employment cannot await the prior permission of the
competent authority, the employment may be accepted provisionally, subject to the permission of
the competent authority, to whom the matter shall be reported forthwith.

6.3 No employee shall, in the discharge of his official duties, deal with any matter or give or sanction
any contract to any company or firm or any other person, if any of his relatives is employed in that
company or firm or under that person or if he or any of his relatives is interested in such matter and
the employee shall refer every such matter or contract to his official superior and the matter or the
contract shall thereafter be disposed of according to the instruction of the authority to whom the
reference is made.

CLARIFICATION

In cases covered under the above sub-clause, the employee should refrain from dealing with such
matter and should record on the file, the facts of his/her relationship/and thereafter the matter should
be disposed of according to the written instruction of the superior authority.

7.0 TAKING PART IN POLITICS AND ELECTIONS

7.1 An employee is prohibited to take part in political activities as detailed hereunder:

(i) to be an office-bearer of a political party or an organisation which takes part in politics;

(ii) to take part in or assist in any manner in any movement/agitation or demonstration of a

political nature;

(iii) to take part in an election to any legislature or local authority; and

(iv) to convass in any election to any legislature or local authority.

(Approved by BoD as notified vide BPE D.O. No. 15(7)/83-GM dated 21st July 1984)

7.2 The display by an employee on his person, vehicle or residence of any election symbol shall amount
to using his influence in connection with an election.

Provided that an employee qualified to vote at such election may exercise his right to vote; where
he does so, he shall give no indication of the manner in which he proposes to vote or has voted.

8.0 TAKING PART IN DEMONSTRATIONS

8.1 No employee of the Corporation shall engage himself or participate in any demonstration/rally
which involves incitement to an offence.

8.2 JOINING OF ASSOCIATION BY EMPLOYEES

No employee shall join, or continue to be a member of an Association, the objects or activities of

which are prejudicial to the interest of sovereignty, integrity of India, public order or morality.

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9.0 CONNECTION WITH PRESS, RADIO OR TV

9.1 No employee or the Corporation shall, except with the prior sanction of the competent authority,
own wholly or in part, or conduct or participate in the editing or management of any newspaper or
other periodical publication.

Provided that no such sanction shall be required if such publication is through a publisher and is of
purely literary, artistic, sporting or scientific character.

9.2 No employee of the Corporation shall, except with the prior sanction of the competent authority,
or in the bonafide discharge of his duties, participate in a radio/TV broadcase or write or publish a
book or contribute an article or write a letter either in his own name or anonymously,
pseudonymously, or in the name of any other person to a newspaper or periodical.

Provided that no such sanction shall be required if such broadcast or such contribution is of a purely
literary, artistic, sporting or scientific character.

10.0 CRITICISM OF GOVERNMENT AND THE CORPORATION

No employee shall, in any electronic and print media or in any document published under his/her
name or anonymously or pseudonymously or in the name of any other person or in any
communication to the Press or in any public utterances, make any statement or opinion:

10.1 Which has the effect to adverse criticism of any policy or action of the Central/State Government
or of the Corporation; or

10.2 Which is capable of embarrassing the relations between the Corporation and the public or between
the Corporation and the Government; or between the Government and the public, or with other
Governments;

Provided that nothing in this rule shall apply to any statement made or views expressed by an
employee, of a purely factual nature which are not considered to be of a confidential nature in
his/her official capacity or in due performance of the duties assigned to him/her.

Provided further that nothing contained in this clause shall apply to bona-fide expressions of views
by him/her as an office-bearer of a recognized Trade Union/Association for the purpose of
safeguarding the conditions of service of such employees or for securing an improvement thereof.

(Modifications approved by BoD in its 447th meeting held on 08.11.2023 and notified vide HR Circular No
08/2023 dated 15.12.2023; effective from 08.11.2023)

11.0 EVIDENCE BEFORE COMMITTEE OR ANY OTHER AUTHORITY

11.1 Save as provided in Rule 11.3 no employee of the Corporation shall, except with the prior sanction
of the competent authority, give evidence in connection with any enquiry conducted by any person,
committee or authority.

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11.2 Where any sanction has been accorded under Rule 11.1 no employee giving such evidence shall
criticize the policy or any action of the Central Government or of the State Government or of the
Corporation.

11.3 Nothing in this rule shall apply to:

11.3.1 Evidence given at any enquiry before an authority appointed by the Government, Parliament or a
State Legislature or the Corporation; or

11.3.2 Evidence given in any judicial enquiry; or

11.3.3 Evidence given at any departmental enquiry ordered by authorities subordinate to the Government
/ Corporation; or

11.3.4 Evidence given at any departmental enquiry ordered by any Public Sector Undertaking.

12.0 UNAUTHORISED COMMUNICATION OF INFORMATION

No employee shall, except in accordance with any general or special order of the Corporation or in
the performance in good faith of the duties assigned to him, communicate, directly or indirectly,
any official document or any part thereof or information to any officer or other employee, or other
person, to whom he is not authorized to communicate such document or information.

EXPLANATION

Quotation by an employee (in his representation to the Head of Office, or Head of Department or
President) of or from any letter, circular or office memorandum or from the notes on any file, to
which he is not authorized to have access, or which he is not authorized to keep in his personal
custody or for personal purposes, shall amount to unauthorized communication of information
within the meaning of this rule.

13.0 GIFTS

13.1 Save as otherwise provided in these Rules, no employee of the Corporation shall accept or permit
any member of his family or any person acting on his behalf, to accept any gift.

EXPLANATION

The expression Gift shall include free transport, boarding, lodging or other service or any other
pecuniary advantage when provided by any person other than a near relative or a personal friend
having no official dealings with the employee.

NOTE

(i) A casual meal, lift or other social hospitality shall not be deemed to be a gift;
(ii) An employee shall avoid acceptance of lavish or frequent hospitality from any individual
or firm having official dealings with him.
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13.2 On occasions such as weddings, anniversaries, funerals or religious functions, when the making of
a gift is in conformity with the prevailing religious or social practice, an employee of the Corporation
may accept gift from his/her near relatives or from his/her personal friends having no official
dealing with him/her but he/she shall make a report to the competent authority if the value of the
gift exceeds Rs.25, 000/- in case of executives and Rs.15, 000/- in case of Non-Executives.

13.3 Deleted.

13.4 In any other case, an employee of the Corporation shall not accept or permit any member of his/her
family or any other person acting on his/her behalf to accept any gift without the sanction of the
Competent Authority if the value thereof exceeds Rs.1,500/-.

Provided that when more than one gift has been received from the same person/firm within a period
of 12 months, the matter shall be reported to the competent authority if the aggregate value of the
gifts exceeds Rs.25, 000/- in case of Executives and Rs.15, 000/- in case of Non-Executives.

(Modifications approved by BoD in its 447th meeting held on 08.11.2023 and notified vide HR Circular No
08/2023 dated 15.12.2023; effective from 08.11.2023)

14.0 GIVING OR TAKING DOWRY

14.1 No employee of the Corporation shall

14.1.1 Give or take or abet giving or taking of dowry; or

14.1.2 Demand, directly or indirectly from the parents or guardians of a bride or bridegroom, as the case
may be, any dowry.

NOTE

For the purpose of this rule, Dowry has the same meaning as defined in the Dowry Prohibition Act,
1961 (No. 28 of 1961) which reads as follows:-

In this Act, 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 to the marriage; 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 after the marriage, as consideration for the
said marriage of the said parties, but does not include dowry or maher in the case of persons
to whom the Muslim Personal Law (shariat) applies ;

EXPLANATION I

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 For the removal of doubts, it is hereby declared that any presents made at the time of a marriage
to either party in the form of cash, ornaments, clothes or other articles, shall not be deemed to be
dowry within the meaning of this section, unless they are made as consideration for the marriage
of the said parties.

EXPLANATION II

The expression Valuable Security has the same meaning as in Section 30 of the Indian Penal Code
(45 of 1860).

NOTE

Shreedhanam, among Christians falls within the definition of Dowry’.

15.0 PUBLIC DEMONSTRATION IN HONOUR OF EMPLOYEES OF THE CORPORATION

No employee shall, except with the previous sanction of the competent authority, receive any
complimentary or valedictory address or accept any testimonial or attend any meeting or
entertainment held in his honour or in honour of any Corporation employee’ provided that nothing
in this Rule shall apply to a farewell, entertainment of a substantially private or informal character
in honour of the employee or any other employee on occasion of his retirement or transfer or any
person who has recently quit service of the Corporation, or the acceptance of simple and
inexpensive entertainment arranged by public bodies or institutions.

16.0 PRIVATE TRADE OR EMPLOYMENT OR COLLECTION OF SUBSCRIPTION/

CONTRIBUTION

16.1 No employee of the Corporation shall, except with the prior sanction of the competent authority,
engage directly or indirectly in any trade or business or undertake any other employment or
negotiate for taking an employment; provided that an employee may without such sanction,
undertake honorary work of a social or charitable nature of occasional work of a literary, artistic,
sporting or scientific character and accept payment of honorarium within prescribed the limits,
subject to the condition that his official duties do not thereby suffer, but he shall discontinue such
work if so directed by the competent authority.

16.2 Every employee of the corporation shall report to the competent authority if any member of his
family is engaged in any trade or business or owns or manages an insurance agency or commission
agency.

16.3 No employee of the Corporation shall without prior sanction of the competent authority except in
the discharge of his official duties, take part in the registration, promotion or management of any
bank or other company which is required to be registered under the Companies Act 1956 (1 of
1956) or any other law for the time being in force or any cooperative society for commercial
purposes.

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 Provided that an employee of the Corporation may take part in the registration, promotion or
management of a consumer/house building cooperative society, substantially for the benefit of
employees of the Corporation, registered under the Cooperative Societies Act of 1912 (2 of 1912)
or any other law for the time being in force, or of a literary, scientific, sporting or charitable society
registered under the Societies Registration Act, 1860 (21 of 1860) or any corresponding law in
force.

Provided that an employee of the Corporation may undertake without the previous sanction of the
competent authority honorary work of a social or charitable nature, or participate in sports activities
as an amateur.

16.4 No employee of the Corporation may accept any fee or any remuneration or any pecuniary
advantage for any work done by him/her for any public body or any private person without the
sanction of the competent authority.

Fees means a recurring or non-recurring payment to an employee of the Corporation from a source
other than the consolidated fund of India, or the consolidated fund of a state (or the consolidated
fund of a union territory) whether made directly to the employee or indirectly through the
intermediary of Corporation but does not include :

16.4.1 Unearned income such as income from property, dividends and interests on securities; and

16.4.2 Income from literary, cultural, artistic, scientific or technological efforts if such efforts are not aided
by the knowledge acquired by the employee in the course of his/her service.

16.5 No employee shall, except with the previous sanction of the competent authority, ask for or accept
contributions to, or otherwise associate himself with the raising of, any funds or other collections
in cash or in kind in pursuance of any object whatsoever.

17.0 INVESTMENT, LENDING AND BORROWING

17.1 No employee shall speculate in any stock, share or other investment.

EXPLANATION

Frequent purchase or sale or both of shares, securities or other investments shall be deemed to be
speculation within the meaning of this sub-rule.

17.1.1 An employee shall send an intimation to the Competent Authority in case the total transaction in
shares, securities, debentures or mutual fund schemes etc. exceed during a calendar year
Rs.50,000/- or such other sum as the Corporation may notify through circular letter from time to
time for this purpose.

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17.2 No employee shall make, or permit any member of his family or any person acting on his behalf to
make, any investment which is likely to embarrass or influence him in the discharge of his official
duties.

17.3 If any question arises whether any transaction is of the nature referred to in Rule 17.1 or Rule 17.2,
the decision of the Chairman & Managing Director thereon shall be final.

17.4.1 No employee shall, save in the ordinary course of business with a bank or a public limited company,
either himself or through any member of his family or any other person acting on his behalf :-

(a) lend or borrow or deposit money, as a principal or an agent, to, or from or with, any person
or firm or private limited company within the local limits or his authority or with whom he
is likely to have official dealings or otherwise place himself under any pecuniary obligation
to such person or firm or private limited company ; or

(b) lend money to any person at interest or in a manner whereby return in money or in kind is
charged or paid ;

Provided that an employee may give to, or accept from, a relative or a personal friend a purely
temporary loan of a small amount free of interest, or operate credit account with a bonafide
tradesman or make an advance of pay to his private employees ;

Provided further that nothing in this sub-rule shall apply in respect of any transaction entered into
by an employee with the previous sanction of the competent authority.

17.4.2 When an employee is appointed or transferred to a post of such nature as would involve him in the
breach of any of the provisions of Rule 17.2 or Rule 17.4.1, he shall forthwith report the
circumstances to the competent authority and shall thereafter act in accordance with such order as
may be made by such authority.

17.4.3 (i) A full-time Director or any executive/employee involved in the decision making process of
fixation of price of an IPO/FPO of shares of PFC shall not apply either himself/herself or through
any member of his/her family or through any other person acting on his/her behalf for allotment of
shares (which includes all types of equity related instruments) in an IPO/FPO of PFC, provided that
Director/employees of PFC may apply for allotment of shares out of the category of preferential
quota reserved for employees/Directors of PFC.

17.4.3 (ii) All executives/employees including full time Directors of PFC who are in possession of
unpublished price sensitive information would be prohibited from dealing/transacting either in their
own name or through any member of their family in the shares of their own company.

17.4.3 (iii) Full-time Director or executive/employee of PFC or any member of his/her family or any person
acting on his/her behalf shall not apply for shares out of any preferential quota reserved for
employees/Directors of other companies.

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17.4.3 (iv) Notwithstanding Clause 19.3 of PFC CDA Rules, all employees of PFC would be required to
disclose to the company all transactions of purchase/sale in shares worth two months Basic pay or
more in value or existing holding/interest in the shares worth two months Basic pay or more in
his/her own company either in his/her own name of any family member to report to the company
indicating quantity, price, date of transaction and nature of interest within 4 working days.
(Modifications approved by BoD in its 447th meeting held on 08.11.2023 and notified vide HR Circular No
08/2023 dated 15.12.2023; effective from 08.11.2023)

18.0 INSOLVENCY AND HABITUAL INDEBTEDNESS

18.1 An employee of the Corporation shall avoid habitual indebtedness unless he/she proves that such
indebtedness or insolvency is the result of circumstances beyond his/her control and does not
proceed from extravagance or dissipation.

18.2 An employee of the Corporation who applies to be, or is adjudged or declared insolvent shall
forthwith report the fact to the competent authority.

19.0 MOVABLE, IMMOVABLE AND VALUABLE PROPERTY

19.1 No employee of the Corporation shall, except with the previous knowledge of the competent
authority acquire or dispose of any immovable property by lease, mortgage, purchase, sale, gift or
otherwise, either in his/her own name or in the name of any member of his/her family.

19.2 No employee of the Corporation shall, except with the prior sanction of the Competent Authority,
enter into any transaction concerning any immovable or movable property with a person or a firm
having official dealings with the employee or his/her subordinate.

EXPLANATION

For the purpose of these sub-rules, the expression Movable Property includes, inter-alia, the following:-

a) jewellery, insurance policies the annual premium of which exceeds the amount as mentioned in clause
19.3, shares, securities and debentures.

b) all loans, whether secured or not, advanced or taken by the employee which exceeds the amount as
mentioned in clause 19.3;

c) motor cars, motor cycles or any other means of conveyance .

d) Refrigerators and television sets etc.

(Modifications approved by BoD in its 447th meeting held on 08.11.2023 and notified vide HR Circular No 08/2023
dated 15.12.2023; effective from 08.11.2023)

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19.3 Every employee of the Corporation shall within one month of the transaction report to the
competent authority, every transaction concerning movable property owned or held by
him/her in his/her own name or in the name of a member of his/her family, if the value of
such property exceeds two months’ Basic Pay of the employees including Board level
appointees.

(Approved by BoD in its 359th meeting held on 24.03.2017 and notified vide HR Circular No 13/2017 dated
10.04.2017; effective from 24.03.2017)

19.4 Every employee shall, on first appointment in the Corporation, submit a return of assets and
liabilities in the prescribed form (vide Annexure I & II) giving the particulars regarding:

a) the immovable property inherited by him or owned or acquired by him or held by him on
lease or mortgage, either in his/her own name or in the name of any member of his/her family
or in the name of any other person;

b) Shares, debentures and cash including bank deposits inherited by him/her or similarly owned,
acquired or held by him/her;

c) other movable property inherited by him/her if similarly owned, acquired or held by him/her
if the value of such property exceeds Rs.10,000/-;

d) debts and other liabilities incurred by him/her directly or indirectly.

19.5 Every employee shall submit a return of immovable property inherited, owned or acquired once in
two years as on the 1st January or as may be prescribed by the Corporation.

19.6 The competent authority may, at any time, by general or special order require an employee to
submit within a period specified in the order, a full or complete statement of such movable or
immovable property held or acquired by him/her or on his/her behalf or by any member of his/her
family, as may be specified in the order. Such statement shall, if so required by the competent
authority, include details of the means by which or the source from which such property was
acquired.

Transaction entered into by the spouse or any other member of family of an employee of the
corporation out of his or her own funds (including stridhan, gifts, inheritance etc.) as distinct from
the funds of the employee of the corporation himself/herself in his or her own name and in his or
her own right would not attract the provisions of this rule.

CLARIFICATION

Department of Public Enterprises have clarified that for the purpose of receiving intimation
from/granting permissions to the functional Directors of the Public Sector Undertakings regarding
sale/purchase of immoveable property etc. under the relevant CDA Rules, the competent authority

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 is the Managing Director or the Chairman-cum-Managing Director of the Undertaking as the case
may be.

20.0 RENTING OUT OF HOUSE OF AN EMPLOYEE TO A FOREIGNER/ FOREIGN

MISSION/ORGANISATION

No employee of the Corporation shall, except with the prior permission of the Chairman and
Managing Director let out his/her house to a foreign mission/organisation/agency etc

NOTE

(1) The request for permission for the renting out of the house of the employee to a
foreigner/foreign mission/ organisation would be examined by the competent authority in
consultation with the Ministry of Power and with the Ministry of Home Affaires (IB). Only
after clearance from the security angle is given by the Ministry of Home Affairs (IB), would
be necessary permission be accorded.

Even case would be accompanied with a self-contained note containing, inter-alia, the
following particulars of the official, who proposes to rent out the house and of the
person/party to whom the house is proposed to be rented out::-

a) Parentage

b) Date of Birth

c) Place of Birth

d) Permanent address

e) Present address

f) Nationality

CLARIFICATION

In cases covered under the above sub-clause, the employee should refrain from dealing with this
matter and should record on the file, the facts of his/her relationship/and the matter should be
disposed of according to the written instructions of the competent authority.

(2) Contravention of this provision would be viewed seriously and strict action would be taken
against the employee concerned for such contravention.

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21.0 CONVASSING OF NON-OFFICIAL OR OTHER INFLUENCES

No employee shall bring or attempt to bring any outside influence to bear upon any superior
authority to further his interests in respect of matters pertaining to his/her service in the
Corporation.

22.0 BIGAMOUS MARRIAGES

22.1 No employee shall enter into, or contract, a marriage with a person having a spouse living; and

22.2 No employee, having a spouse living shall enter into or contract a marriage with any person:

Provided that the Chairman and Managing Director may permit an employee to enter into or
contract any such marriage as is referred to in Rule 22.1 or Rule 22.2 if he is satisfied that :-

a) such marriage is permissible under the personal law applicable to such employee and the
other party to the marriage ; and

b) in the opinion of the Chairman & Managing Director, there are other grounds for so doing.

22.3 An employee who has married or marries a person other than an Indian national, shall forthwith
intimate the fact to the competent authority.

23.0 CONSUMPTION OF INTOXICATING DRINKS & DRUGS

23.1 An employee of the Corporation shall:

23.1.1 Strictly abide by any law relating to intoxicating drinks or drugs in force in any area in which he/she
may happen to be for the time being ;

23.1.2 Not be under the influence of any intoxicating drink or drug during the course of his/her duty and
shall also take due care that the performance of his/her duties at any time is not affected in any way
by the influence of such drink or drug;

23.1.3 Refrain from consuming any intoxicating drink or drug in a public place;

23.1.4 Not appear in a public place in a state of intoxication;

23.1.5 Not use any intoxicating drink or drug to excess

EXPLANATION

(1) For the purpose of this rule, ‘Public Place’ means any place or premises (including clubs,
even exclusively meant for members where it is permissible for the members to invite non-
members as guests, bars and restaurants, conveyance) to which the public have or are
permitted to have access, whether on payment or otherwise.

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 (2) An employee of the Corporation should also refrain from consuming intoxicating drinks even
at official parties arranged by Foreign Missions whether within the Mission premises or in
halls/lounges exclusively reserved or at parties arranged by Government Public
Undertakings/or semi-government organisations where foreigners are entertained or at
similar parties hosted by others.

24.0 OBSERVANCE OF SMALL FAMILY NORMS AS PER NATIONAL POPULATION

POLICY

Every employee should ensure that he/she observes the small family norms notified by the
government from time to time to avail the benefits attached to such norms.

24(A) PROHIBITION OF SEXUAL HARASSMENT OF WORKING WOMEN

Every employee who is in charge of a work place shall take appropriate steps to prevent sexual
harassment to any woman at such work place.

CLARIFICATION

In cases covered under the above sub-clause ‘sexual harassment’ includes such unwelcome
sexually determined behaviour, whether directly or otherwise, as

a) physical contact and advances

b) demand or request for sexual favours

c) sexually coloured remarks

d) showing any pornography; or

e) any other unwelcome physical, verbal or non-verbal conduct of a sexual nature.

* (Approved by BoD as notified vide DPE OM No. 2(15)/2007-DPE dated 20th March 2007)

25.0 SUSPENSION

25.1 The appointing authority or any authority to which it is subordinate or the disciplinary authority or
any other authority empowered in that behalf by the Board or the Chairman and Managing Director
by general or special order, may place an employee under suspension:

25.1.1 When a disciplinary proceeding against the employee is contemplated or is pending; or

25.1.2 When a case against the employee in respect of any criminal offence is under investigation, inquiry
or trial; or

25.1.3 When in the opinion of the competent authority, the employee has engaged himself/herself in
activities prejudicial to the interests of the security of the State.

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25.2 An employee shall be deemed to have been placed under suspension by an order of the Appointing
authority.

25.2.1 With effect from the date of detention of the employee, if the employee is detained in custody,
whether on a criminal charge or otherwise, for a period exceeding forty-eight hours;

25.2.2 With effect from the date of conviction of the employee, if in the event of conviction for an offence,
the employee is sentenced to a term of imprisonment exceeding forty-eight hours and is not
forthwith dismissed or removed or compulsorily retired consequent to such conviction.

EXPLANATION

The period of forty-eight hours referred to in Rule 25.2.2. shall be computed from the
commencement of imprisonment, after the conviction and for this purpose, intermittent periods of
imprisonment, if any, shall be taken into account.

25.3 Where a penalty of dismissal or removal from service imposed upon an employee under suspension
is set aside on appeal or on review under these rules and the case is remitted for further enquiry or
action or with any other directions, the order of his/her suspension shall be deemed to have
continued in force on and from the date of the original order of dismissal or removal and shall
remain in force until further orders.

25.4 Where a penalty of dismissal or removal from service imposed upon an employee is set aside, or
declared or rendered void in consequence of or by a decision of a court of law and the disciplinary
authority, on consideration of the circumstances of the case, decides to hold a further enquiry
against him on the allegations on which penalty of dismissal or removal was originally imposed,
the employee shall be deemed to have been placed under suspension by the appointing authority
from the date of the original order of dismissal or removal and shall continue to remain under
suspension until further orders.

25.5.1 An order of suspension made or deemed to have been made under the rule shall continue to remain
in force until it is modified or revoked by the authority competent to do so.

25.5.2 Where an employee is suspended or deemed to have been suspended (whether in connection with
disciplinary proceedings or otherwise) and any other disciplinary proceedings is commenced
against the employee during the continuance of that suspension, the authority competent to place
the employee under suspension may, for reasons to be recorded in writing, direct that the employee
shall continue to be under suspension until the termination of all or any of such proceedings.

25.5.3 An order of suspension made or deemed to have been made under this rule may at any time be
modified or revoked by the authority which made or is deemed to have made the order or by the
authority to which that authority is subordinate.

25.6 An employee under suspension shall not leave his/her headquarter station without the written
permission of the competent authority.

25.7 An employee under suspension shall not engage in any other employment, business, profession or
vocation.

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26.0 SUBSISTENCE ALLOWANCE

26.1 An employee under suspension shall be entitled to draw subsistence allowance equal to 50 percent
of his basic pay, provided the disciplinary authority is satisfied that the employee is not engaged in
any other employment or business or profession or vocation. In addition, he shall be entitled to
dearness allowance admissible on such subsistence allowance and other allowances he was in
receipt of on the date of suspension, provided the suspending authority is satisfied that the employee
continues to meet the expenditure for which the allowance was granted.

26.2 Where the period of suspension exceeds the first three months, the authority which made or is
deemed to have made the order of suspension, shall be competent to vary the amount of subsistence
allowance for any period subsequent to the period of the first three months as follows

26.2.1 The amount of subsistence allowance may be increased to 75% of basic pay and allowance thereof
if, in the opinion of the said authority, the period of suspension has been prolonged for reasons to
be recorded in writing not directly attributable to the employee under suspension;

26.2.2 The amount of subsistence allowance may be reduced to 25 percent of basic pay and allowance
thereon if in the opinion of the said authority, the period of suspension has been prolonged due to
the reasons to be recorded in writing, directly attributable to the employee under suspension.

27.0 TREATMENT OF THE PERIOD OF SUSPENSION

27.1 When the employee under suspension is reinstated, the competent authority may grant to the
employee, the following pay and allowances for the period of suspension:-

(a) If the employee is exonerated and not awarded any of the penalties mentioned in Rule 28,
the full pay and allowances which the employee would have been entitled to if the
employee had not been suspended, less the subsistence allowance already paid to the
employee and

(b) If otherwise, such proportion of pay and allowances as the competent authority may
prescribed.

27.2 In a case falling under sub-clause (a) the period of absence from duty will be treated as a period
spent on duty. In a case falling under sub-clause (b), it will not be treated as a period spent on duty
unless the competent authority so directs.

Provided that if the employee so desires, the competent authority may order that the period of
suspension shall be converted into leave of any kind due and admissible to the employer.

28.0 PENALTIES

The following penalties may, for good and sufficient reasons and as hereinafter provided, be
imposed on an employee:-

Further the disciplinary authority will specify the period of operation of penalty.

(Approved by BoD as notified vide Circular No. 168/2000 dated 5 th September 2000)

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28.1 MINOR PENALTIES

(a) Censure;

(b) Withholding of increments of pay with or without cumulative effect;

(c) Withholding of promotion;

(d) Recovery from pay or such other amount as may be due to the employee, of the whole or
part of any pecuniary loss caused to the Corporation by negligence or breach of orders ;
and

(e) Reduction to a lower stage in the time scale by one stage of pay for a period not exceeding
3 years, without cumulative effect and not adversely affecting his/her terminal benefits.

(Modification approved by BoD in its 447th meeting held on 08.11.2023 and notified vide HR
Circular No 08/2023 dated 15.12.2023; effective from 08.11.2023)

28.2 MAJOR PENALTIES

(a) Reduction to a lower stage in the time-scale of pay for a specified period, with further
directions as to whether or not the employee will earn increments of pay during the period
of such reduction and whether on the expiry of such period, the reduction will or will not
have the effect of postponing the future increments of the pay of the employee.

(b) Reduction to a lower time-scale of pay, grade or post for a period to be specified in the
order of penalty, which shall be a bar to the promotion of the employee during such
specified period to the time-scale of pay, grade or post from which the employee was
reduced, with directions as to whether or not, on promotion on the expiry of the said
specified period - (a) the period of reduction to time scale of pay, grade or post shall
operate to postpone future increments of his pay, and if so, to what extent; and (b) the
employee shall regain his original seniority in the higher time scale of pay, grade or
post.
(c) Compulsory Retirement.
There would be no adverse impact on the retirement benefits.

(Approved by BoD in its 447th meeting held on 08.11.2023 and notified vide HR Circular No 08/2023
dated 15.12.2023; effective from 08.11.2023)

(d) Removal from service which shall not be a disqualification for future employment ;

(e) Dismissal from service which shall ordinarily be a disqualification for future employment
under the Govt. or the CPSE owned or controlled by the Govt.

Provided that, in every case in which the charge of possession of assets disproportionate
to known sources of income or the charge of acceptance from any person of any
gratification, other than legal remuneration, as a motive or reward for doing or for

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 bearing to do any official act is established, the penalty mentioned in Rule-28.2(b) or
28.2(c) or 28.2(d) or 28.2(e) shall be imposed.

(Approved by BoD in its 447th meeting held on 08.11.2023 and notified vide HR Circular No 08/2023
dated 15.12.2023; effective from 08.11.2023)

Provided further that in any exceptional case and for special reasons to be recorded in
writing, any other penalty may be imposed.

EXPLANATION

The following shall not amount to be a penalty within the meaning of this rule:-

(i) Withholding of increment of an employee on account of his/her work being found unsatisfactory
or not being of the required standard or for his/her failure to pass a prescribed test or examination;

(ii) Stoppage of an employee at the efficiency bar, if any, in the time scale on the ground of his/her
unfitness to cross the bar;

(iii) Non-promotion, whether in an officiating capacity or otherwise of an employee to a higher post for
which he/she may be eligible for consideration but for which he/she is found unsuitable after
consideration of his/her case;

(iv) Reversion to a lower grade or post, of an employee officiating in a higher grade or post, on the
ground that he/she is considered to be unsuitable for such higher grade or post, or on any
administrative ground unconnected with his/her conduct;

(v) Reversion to his/her previous grade or post, of an employee appointed on probation to another grade
or post, during or at the end of the period of probation, in accordance with the terms of his/her
appointment or the rules and orders governing such probation;

(vi) Replacement of the services of a Government servant whose services had been borrowed from a
State/Central Government or an authority under the control of a State/Central Government, at the
disposal of the State/Central Government or the Authority from which the services of such
Government servant had been borrowed;

(Approved by BoD in its 447th meeting held on 08.11.2023 and notified vide HR Circular No 08/2023 dated
15.12.2023; effective from 08.11.2023)

(vii) (deleted - in terms of BoD approval notifying compulsory retirement under major penalties in its 447th meeting
held on 08.11.2023 and notified vide HR Circular No 08/2023 dated 15.12.2023; effective from 08.11.2023 )

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(viii) TERMINATION OF SERVICE

a) of an employee appointed on probation, during or at the end of the period of probation, in

accordance with the terms of his appointment or the rules and orders governing such probation ;
or

b) of an employee appointed in a temporary capacity otherwise than under a contract or agreement,

on the expiration of the period for which he/she was appointed, or earlier in accordance with the
terms of his/her appointment ; or

c) of an employee appointed under a contract or agreement, in accordance with the terms of such
contract or agreement ; or

d) of any employee on reduction of Establishment.

(ix) Any compensation awarded on the recommendation of the Complaints Committee of the PFC for
inquiring into any complaint of sexual harassment within the meaning of Rule-24(A) of the PFC
CDA Rules.

(Approved by BoD in its 447th meeting held on 08.11.2023 and notified vide HR Circular No 08/2023 dated
15.12.2023; effective from 08.11.2023)

29.0 IMPOSITION OF PENALTIES

The disciplinary authority as specified in the schedule may impose any of the penalties specified in
Rule 28 on any employee. No major penalty shall, however, be imposed by any authority lower
than the appointing authority.

30.0 PROCEDURE FOR IMPOSING MAJOR PENALTIES

30.1 No order imposing any of the major penalties specified in Rule 28.2 shall be made except after an
inquiry is held in accordance with this rule.

30.2 Whenever the disciplinary authority is of the opinion that there are grounds for inquiring into the
truth of any imputation of misconduct or misbehaviour against an employee, it may itself inquire
into, or appoint any officer of the Corporation or any other public servant or retired public servant
(hereinafter called the Inquiring Authority) to inquire into the truth thereof.

(Approved by BoD in its 275th meeting held on 29th September 2010)

Provided that where there is a complaint of sexual harassment within the meaning of Rule-5.40
and 24(A) of PFC CDA Rules, the Complaints Committee for inquiring into such complaints,
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 shall be deemed to be the inquiring authority appointed by the disciplinary authority for the
purpose of these rules and the Complaints Committee shall hold, if separate procedure has not
been prescribed for the complaints committee for holding the inquiry into the complaints of
sexual harassments, the inquiry as far as practicable in accordance with the procedure laid down
in these rules.

(Approved by BoD in its 447th meeting held on 08.11.2023 and notified vide HR Circular No 08/2023 dated
15.12.2023; effective from 08.11.2023)

30.2.1 The departmental proceedings referred to in sub rule 30.2, if initiated before an employee retired
shall, after the retirement of the employee, be deemed to be proceedings under this rule and shall
be continued and concluded in the same manner as if the employee had continued in service.

(Approved by BoD as notified vide Circular No. 165/2000 dated 31 st July 2000)

EXPLANATION

Where the disciplinary authority itself holds the inquiry, any reference to the inquiring authority in
such cases in these Rules will be construed as a reference to the disciplinary authority.

30.3 Where it is proposed to hold an enquiry, against an employee, the disciplinary authority shall draw
up or cause to draw up:

30.3.1 The substance of the imputation of misconduct or misbehaviour into definite and distinct articles
of charge:

30.3.2 A statement of imputations of misconduct or misbehaviour in support of each article or charge,

which shall contain:-

(a) a statement of all relevant facts including any admission or confession made by the employee
;

(b) a list of documents by which and a list of witnesses by whom, the articles of charge are
proposed to be sustained.

30.4 The disciplinary authority shall deliver or cause to be delivered to the employee, a copy of the
articles of charge, the statement of imputations of misconduct or misbehaviour and a list of
documents and witnesses by which each article of charge is proposed to be sustained and shall
require the employee to submit, a written statement as to whether the employee admits or denies
any or all the articles of charge and also to submit a written statement of the defence of the employee
in regard to the articles of charge not admitted, within a period of 15 days, which may be further
extended for a period not exceeding 15 days at a time for reasons to be recorded in writing by
the Disciplinary Authority or any other authority authorized by the Disciplinary Authority on his
behalf, provided that under no circumstances the extension of time for filing written statement
of defence shall exceed 45 days from the date of receipt of articles of charge. The employee shall
also be asked whether the employee desires to be heard in person in respect of the charges not
admitted.

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 (Approved by BoD in its 447th meeting held on 08.11.2023 and notified vide HR Circular No 08/2023 dated
15.12.2023; effective from 08.11.2023)

EXPLANATION

It will not be necessary to show the documents listed with the charge-sheet or any other document
to the employee at this stage.

30.5 On receipt of the written statement of the employee, or if no such statement is received within the
time specified, an enquiry may be held by the disciplinary authority itself, or by any other employee
appointed as Inquiring Authority under Rule 30.2 after taking such evidence as it may deem fit :

“Provided that it may not be necessary to hold an inquiry in respect of the charges admitted by the
employee in his/her written statement. The disciplinary authority shall, however, record its
findings on each such charge after taking such evidence as it may think fit and shall act in the
manner laid down in Rule 31.”

30.6 Where the disciplinary authority itself inquires or appoints an inquiring authority for holding an
inquiry it may, by an order, appoint an employee of the Corporation or any other Public Servant to
be known as the “Presenting Officer” to present on its behalf the case in support of the articles of
charge.

30.7 The disciplinary authority shall, where it is not the inquiring authority, forward to the inquiring
authority:-

(a) A copy of the articles of charge and the statement of imputations of misconduct or
misbehaviour;

(b) A copy of the written statement of defence, if any, submitted by the employee;

(c) A copy of the statements of witnesses, if any, referred to in Rule 30.3.2 ;

(d) Evidence proving the delivery of documents referred to in Rule 30.3.2 to the employee;
and

(e) A copy of the order appointing the “Presenting Officer”.

30.8 The employee may take the assistance of any other employee to present the case on his/her behalf
but may not engage a legal practitioner for the purpose.

NOTE

1. The employee shall not take the assistance of any other employee who has two pending
disciplinary cases on hand in which that employee has to give such assistance.

2. Rule 30.8 inter-alia provides that a delinquent employee, against whom disciplinary
proceedings have been instituted as for imposition of a major penalty, may not engage a

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 Legal Practitioner to present the case on his behalf before the enquiring authority. This
position has to be maintained unless the Presenting Officer appointed by the disciplinary
authority, having regard to the circumstances of the case permits the engagement of a
Legal Practitioner by the delinquent employee. When on behalf of the disciplinary
authority the case is being presented by a Prosecuting Officer of the Central Bureau of
Investigation or a Government Law Officer (such as Legal Adviser, Jr. Legal Adviser) there
are evidently good and sufficient circumstances for the disciplinary authority to exercise
his discretion in favour of the delinquent employee and allow him to be represented by a
legal practitioner. Any exercise of discretion to the contrary in such cases is likely to be
held by the court as arbitrary and prejudicial to the defence of the delinquent employee.

30.9 On the date fixed by the Inquiring Authority, the employee shall appear before the Inquiring
Authority at the time, date and place specified in the notice. The Inquiring Authority shall ask the
employee whether the employee pleads guilty or has any defence to make and if the employee
pleads guilty to any of the articles of charge, the Inquiring Authority shall record the plea, sign the
record and obtain the signature of the employee concerned thereon. The Inquiring Authority shall
record a finding of guilty in respect of those articles of charge to which the employee concerned
pleads guilty.

30.10 If the employee does not plead guilty, the Inquiring Authority shall adjourn the case to a later date
not exceeding thirty days, after recording an order that the employee may, for the purpose of
preparing his/her defence:-

a) Inspect the documents listed with charge-sheet referred to in Rule 30.3 within five days of
the order or within such further time not exceeding five days as the signing authority may
allow:

b) Submit a list of additional documents and witnesses that he/she wants to examine; and

c) Be supplied with the copies of the statements of witnesses, if any, listed in the charge-sheet.

NOTE

Relevancy of the additional documents and the witnesses referred to in sub-clause (b) of
Rule 30.10 will have to be given by the employee concerned and the documents and the
witnesses may be summoned if the Inquiring Authority is satisfied about their relevance to
the charges under inquiry.

30.11 Inquiring Authority shall ask the authority in whose custody or possession the documents are kept,
for the production of the documents on such date as may be specified.

30.12 The Authority in whose custody or possession the requisitioned documents are, shall arrange to
produce the same before the Inquiring Authority on the date, place and time specified in the
requisition notice;

Provided that the authority having the custody or possession of the requisitioned documents may
claim privilege if the production of such documents will be against the public interest or the interest
of the Corporation. In that event, it shall inform the Inquiring Authority accordingly. The Inquiring
Authority shall, on being informed, communicate the information to the employee concerned.

HR Manual Page 80
30.13 On the date fixed for the inquiry, the oral and documentary evidence by which the articles of charge
are proposed to be proved shall be produced by or on behalf of the Disciplinary Authority. The
witnesses shall be examined by or on behalf of the Presenting Officer and may be cross-examined
by or on behalf of the employee. The presenting officer shall be entitled to re-examine the
witnesses on any points on which they have been cross-examined, but not on a new matter without
the permission of the Inquiring Authority. The Inquiring Authority may also put such questions to
the witness as it thinks fit.

30.14 If it shall appear necessary before the close of the case on behalf of the disciplinary authority, the
Inquiring Authority may, in its discretion, allow the Presenting Officer to produce evidence not
included in the list given to the employee or may itself call for new evidence or recall and reexamine
any witness and in such case the employee shall be entitled to have, if he/she demands a copy of
the list of further evidence proposed to be produced and an adjournment of the inquiry for three
clear days before the production of such new evidence, exclusive of the day of adjournment and
the day to which the inquiry is adjourned. The inquiring authority shall give the employee an
opportunity of inspecting such documents before they are taken on record. The inquiring authority
may also allow the employee to produce new evidence, if it is of the opinion that the production of
such evidence is necessary, in the interest of justice.

NOTE

New evidence shall not be permitted or called for or any witness shall not be called to fill up any
gap in the evidence. Such evidence shall be called for only when there is an inherent lacuna or
defect in the evidence which has been produced originally.

30.15 When the case for the Disciplinary Authority is closed, the employee may be required to state
his/her defence, orally or in writing as he/she may prefer. If the defence is made orally, it shall be
required to sign the record. In either case, a copy of the statement of defence shall be given to the
Presenting Officer, if any, appointed.

30.16 The evidence on behalf of the employee shall then be produced. The employee may examine
himself/herself in his/her own behalf if he/she so prefers. The witnesses produced by the employee
shall then be examined and shall be liable to cross-examination, re-examination and examination
by the Inquiring Authority according to the provisions applicable to the witnesses for the
Disciplinary Authority.

30.17 The Inquiring Authority may, after the employee closes his/her case, and shall, if the employee has
not examined himself/herself, generally question him/her on the circumstances appearing against
him/her in the evidence for the purpose of enabling the employee to explain any circumstances
appearing in the evidence against him/her.

30.18 The Inquiring Authority, after the completion of the production of the evidence, the charged sheeted
employee and the Presenting Officer may file written briefs of their respective cases within 15 days
of the date of completion of the production of evidence.

30.19 If the employee does not submit the written statement of defence referred to in rule 30.4 on or
before the date specified for the purpose or does not appear in person, or through the assisting
officer or otherwise fails or refuses to comply with any of the provisions of these rules, the Inquiring
Authority may hold the enquiry ex parte.

HR Manual Page 81
30.20 Whenever any Inquiring Authority, after having heard and recorded the whole or any part of the
evidence in an inquiry ceases to exercise jurisdiction therein, and is succeeded by another Inquiring
Authority which has, and which exercises such jurisdiction, the Inquiring Authority so succeeding
may act on the evidence so recorded by its predecessor, or partly recorded by its predecessor, and
partly recorded by itself;

Provided that if the succeeding Inquiring Authority is of the opinion that further examination of
any of the witnesses whose evidence has already been recorded is necessary in the interest of
justice, it may recall, examine, cross-examine and re-examine any such witness as hereinbefore
provided.

Further, the succeeding Inquiring Authority, may by recording the reasons in writing and with
the consent of Disciplinary Authority, conduct the Inquiry afresh/de-novo.

(Approved by BoD in its 447th meeting held on 08.11.2023 and notified vide HR Circular No 08/2023 dated
15.12.2023; effective from 08.11.2023)

30.21.1 Where a disciplinary authority competent to impose any of the penalties specified in Rule 28.1 (but
not competent to impose any of the penalties specified in Rule 28.2) has itself inquired into or
caused to be inquired into the articles of any charge and that authority, having regard to its own
findings or having regard to its decision on any of the findings of any Inquiring Authority appointed
by it, is of the opinion that any of the penalties specified in Rule 28.2 should be imposed on the
employee, that authority shall forward the records of the enquiry to such disciplinary authority as
is competent to impose the last mentioned penalties.

30.21.2 The disciplinary authority to which the records are so forwarded may act on the evidence on record
or may, if it is of the opinion that further examination of any of the witnesses is necessary in the
interest of justice, recall the witness and examine, cross-examine and re-examine the witness and
may impose on the employee such penalty as it may deem fit in accordance with these rules.

30.22.1 After the conclusion of the inquiry, report shall be prepared and it shall contain:

a) A gist of the articles of charge and the statement of the imputations of misconduct or
misbehaviour;

b) A gist of the defence of the employee in respect of each article of charge;

c) An assessment of the evidence in respect of each article of charge;

d) The findings on each article of charge and the reasons therefore.

EXPLANATION

If in the opinion of the Inquiring Authority, the proceedings of the inquiry establish any article of
charge different from the original article of charge, it may record its findings on such article of
charge;

HR Manual Page 82
 Provided that the findings on such article of charge shall not be recorded unless the employee has
either admitted the facts on which such article of charge is based or has had a reasonable
opportunity of defending himself/herself against such article or charge.

30.22.2 The Inquiring Authority, where it is not itself the Disciplinary Authority, shall forward to the
Disciplinary Authority the records of inquiry which shall include:-

a) The report of the inquiry prepared by it under Rule 30.22.1 above;

b) The written statement of defence, if any, submitted by the employee referred to in Rule-
30.15;

c) The oral and documentary evidence produced in the course of the inquiry;

d) Written briefs, if any, as referred to in rule 30.18; and

e) The order, if any, made by the Disciplinary Authority and the Inquiring Authority in regard
to the inquiry.

30.22.3 (a) The Inquiring Authority should conclude the inquiry and submit his/her report within a
period of six months from the date of receipt of order of his/her appointment as Inquiring
Authority.

(b) Where it is not possible to adhere to the time limit specified in clause (a), the Inquiring
Authority may record the reasons and seek extension of time from the disciplinary authority
in writing, who may allow an additional time not exceeding six months for completion of the
Inquiry, at a time.

(c) The extension for a period not exceeding six months at a time may be allowed for any good
and sufficient reasons to be recorded in writing by the Disciplinary Authority or any other
Authority authorized by the Disciplinary Authority on his/her behalf.

(Approved by BoD in its 447th meeting held on 08.11.2023 and notified vide HR Circular No 08/2023 dated
15.12.2023; effective from 08.11.2023)

31.0 ACTION ON THE INQUIRY REPORT

31.1 The Disciplinary authority, if it is not itself the Inquiring Authority may for reasons to be
recorded by it in writing, remit the case to the same or another Inquiring Authority for fresh/ de
novo or further inquiry and report, and the Inquiring Authority thereupon shall proceed to hold the
further inquiry according to the provisions of rule 30 as far as may be.

(Modifications approved by BoD in its 447th meeting held on 08.11.2023 and notified vide HR Circular No
08/2023 dated 15.12.2023; effective from 08.11.2023)

HR Manual Page 83
31.2 The Disciplinary Authority, shall if it disagrees with the findings of the Inquiring Authority or any
article of charge, records its reasons for such disagreement and record its own findings on such
charge, if the evidence on record is sufficient for the purpose.

31.3 The disciplinary authority shall forward or cause to be forwarded a copy of the report of the
inquiry, if any, held by the disciplinary authority or where the disciplinary authority is not the
inquiring authority, a copy of the report of the inquiring authority, together with its own tentative
reasons for disagreement, if any, with the findings of inquiring authority on any article of charge
to the employee who shall be required to submit, if employee so desires, his/her written
representation or submission to the disciplinary authority within fifteen days, irrespective of
whether the report is favourable or not to the employee.

The Disciplinary Authority shall consider the representation, if any, submitted by the employee
and record its findings before proceeding further in the matter as specified in Rules 31.4 and
31.5.

(Approved by BoD in its 447th meeting held on 08.11.2023 and notified vide HR Circular No 08/2023 dated
15.12.2023; effective from 08.11.2023)

31.4 If the Disciplinary authority having regard to its findings on all or any of the articles of charge is of
the opinion that any of the penalties specified in Rule 28.1 should be imposed on the employee, it
shall notwithstanding anything contained in Rule 32 make an order imposing such penalty.

31.5 If the Disciplinary authority having regard to its findings on all or any of the articles of charge is of
the opinion that no penalty is called for, it may pass an order exonerating the employee concerned.

32.0 PROCEDURE FOR IMPOSING MINOR PENALTIES

32.1 Subject to the provision of Rule 31.3, no order imposing of an employee any of the penalties
specified in Rule 28.1 shall be made except after ;

a) Informing the employee concerned in writing of the proposal to take action against him
and imputations of misconduct or misbehaviour on which action is proposed to be taken
against him/her and given a reasonable opportunity to submit his/her written statement of
defence within a specified period not exceeding 15 days;

b) Holding an inquiry in the manner laid down in Rule 30.3 to 30.22, in every case in which
the disciplinary authority is of the opinion that such inquiry is necessary;

c) Taking representations, if any, submitted by the employee under clause (a) of Rule 32.1
and the record of inquiry, if any, held under clause (b) of Rule 32.1 into consideration; and

d) Recording of findings on each imputation of misconduct or misbehaviour.

HR Manual Page 84
32.2 Notwithstanding anything contained in clause (b) of Rule 32.1, if in a case, it is proposed after
considering the representation, if any, made by the employee under clause (a) of Rule 32.1, to
withhold increments of pay and such withholding of increments is likely to affect adversely the
retirement benefits of the employee or to withhold increments of pay with cumulative effect for
any period, an inquiry shall be held in the manner laid down in rule 30.3 to 30.22, before making
any order imposing on the employee such penalty.

32.3 The record of proceedings in such cases shall include:-

a) A copy of the intimation to the employee of the proposal to take action against the
employee;

b) A copy of the statement of imputations of misconduct or misbehaviour delivered to the

employee;

c) The employee’s representation, if any;

d) The evidence produced during the inquiry;

e) The findings on each imputation of misconduct or misbehaviour; and

f) The orders on the case together with the reasons therefore.

33.0 COMMUNICATION OR ORDERS

Orders made by the Disciplinary Authority under Rule 31 or Rule 32 shall be communicated to the
employee concerned, who shall also be supplied with a copy of the report of inquiry, if any, as also
reasons for disagreement, if any, with the Inquiring Authority.

34.0 COMMON PROCEEDINGS

Where two or more employees are concerned in a case, the authority competent to impose a major
penalty on all such employees may make an order:-

a) Directing that disciplinary proceedings against all of them may be taken in common
proceedings;

b) The specified authority which may function as the disciplinary authority for the purpose of
such common proceedings;

c) The penalties specified in rule which such disciplinary authority shall be competent to
impose; and

d) Whether the procedure laid down in Rule 30 and Rule 31 or Rule 32 shall be followed.

HR Manual Page 85
35.0 SPECIAL PROCEDURE IN CERTAIN CASES

Notwithstanding anything contained in Rule 30, 31 or 32, the Disciplinary Authority may impose
any of the penalties specified in Rule 28 in any of the following circumstances:-

a) The employee has been convicted on criminal charge, or on the strength of facts or
conclusions arrived at by a judicial trial ; or

b) Where the Disciplinary Authority is satisfied for reasons to be recorded by it in writing that
it is not reasonably practicable to hold an enquiry in the manner provided in these rules ;
or

c) Where the Board/Chairman and Managing Director is satisfied that in the interest of the
security of the Corporation, it is not expedient to hold any inquiry in the manner provided
in these rules.

36.0 EMPLOYEES ON DEPUTATION

36.1 Where an order of suspension is made or disciplinary proceedings are initiated against an employee,
who is on deputation to the Corporation from the Central or State Government or another Public
Undertaking or a local authority etc., the authority lending his services (hereinafter referred to as
the “Lending Authority”) shall forthwith be informed of the circumstances leading to the order of
his/her suspension, or the commencement of the disciplinary proceedings as the case may be.

36.2 In the light of the findings in the disciplinary proceedings conducted against the employee:-

a) If the Disciplinary Authority is of the opinion that any of the minor penalties should be
imposed on him/her, it may pass such orders on the case as it deems necessary after
consultation with the Lending Authority;

Provided that in the event of a difference of opinion between the Disciplinary and the
Lending Authority, the services of the employee shall be replaced at the disposal of the
Lending Authority.

b) If the Disciplinary Authority is of the opinion that any of the major penalties should be
imposed on him, it should replace his service at the disposal of the Lending Authority and
transmit to it the proceedings of the inquiry for such action as it deems necessary.

36.3 If the employee submits an appeal against an order imposing a minor penalty on him under sub-
clause (a) of Rule 36.2, it will be disposed of after consultation with the Lending Authority.

Provided that if there is a difference of opinion between the Appellate Authority and the Lending
Authority, the services of the employee shall be replaced at the disposal of the Lending Authority,
and the proceedings of the case shall be transmitted to that Authority for such action as it deems
necessary.

HR Manual Page 86
37.0 PROVISION REGARDING EMPLOYEES LENT TO OTHER ORGANISATIONS

37.1 Where the services of an employee are lent to the Government or any authority subordinate thereto
or to any other Public Undertaking etc., (hereinafter referred to as the “Borrowing Authority”) the
Borrowing Authority shall have the powers of the Appointing Authority for the purpose of placing
such an employee under suspension and of the Disciplinary Authority for the purpose of conducting
disciplinary proceedings against him;

Provided that the Borrowing Authority shall forthwith inform Power Finance Corporation Limited
(hereinafter referred to as the “Lending Authority”) of the circumstances leading to the order of
suspension of an employee or the commencement of the disciplinary proceedings, as the case may
be.

37.2 In the light of the findings of the Inquiring Authority against the employee:-

a) If the borrowing authority is of the opinion that any of the minor penalties specified in Rule
28.1 should be imposed on the employee, if any, after consultation with the Corporation, it
make such orders in the case as it deems necessary:

Provided that in the event of a difference of opinion between the Borrowing Authority and
the Lending Authority, the services of the employee shall be replaced at the disposal of the
Corporation.

b) If the Borrowing Authority is of the opinion that any of the major penalties specified in
Rule 28.2 should be imposed on the employee, it shall replace his/her services at the
disposal of the Corporation and transmit to it the proceedings of the inquiry for such action
as deemed necessary.

EXPLANATION

The Disciplinary Authority may make an order under this clause on the record of inquiry
transmitted to it by the Borrowing Authority or by holding such further inquiry as it may
deem necessary, as far as may be, in accordance with Rules 30, 31, or 32.

37(A) (i) Disciplinary proceedings, if instituted while the employee was in service whether before
his retirement or during his re-employment, shall, after the final retirement of the
employee, be deemed to be proceeding and shall be continued and concluded by the
authority by which it was commenced in the same manner as if the employee had continued
in service.

(ii) During the pendency of the disciplinary proceeding, the disciplinary authority shall
withhold payment of retirement benefits till the proceedings are completed and final order
is passed thereon except for EL/HPL encashment, the total contribution to PF, post retiral
medical facilities and NPS. (Approved in the BoD Meeting held on 14.09.2020; notified vide HR
Circular No. 05/2020 dated 16.09.2020)

HR Manual Page 87
38.0 APPEALS

38.1 An employee may appeal against an order imposing upon him any of the penalties specified in Rule
28 or against the order of suspension referred to in Rule 25. The appeal shall lie to the Authority
notified from time to time.

38.2 An appeal shall be preferred within forty five days from the date of communication (delivered) of
the order appealed against.

Provided that the appellate authority may entertain an appeal after the expiry of the said period, if
it is satisfied that the appellant has sufficient cause for not preferring the appeal in time.

The appeal shall be addressed to the Appellate Authority specified from time to time and submitted
to the authority whose order is appealed against. The authority whose order is appealed against
shall forward the appeal with the relevant records of the case to the Appellate Authority within 15
days. The Appellate Authority shall consider whether the penalty is excessive or inadequate and
pass appropriate orders within three months of the date of appeal. The Appellate Authority may
pass order confirming, enhancing, reducing or setting aside the penalty or remitting the case to the
authority which imposed the penalty or to any other authority which such direction as may deem
fit in the circumstances of the case;

Provided that if the enhanced penalty which the Appellate Authority proposes to impose is a major
penalty specified in Rule 28.2 and an inquiry as provided in Rule 30 has not already been held in
the case, the Appellate Authority shall direct that such inquiry be held in accordance with the
provisions of Rule 30 and thereafter consider the record of the inquiry and pass such order as it
may deem proper.

If the appellate authority decides to enhance the punishment but an inquiry has already been held
as provided in rule 30, the Appellate Authority shall give a show-cause notice to the employee as
to why the enhance penalty should not be imposed upon him. The appellate authority shall pass
final order after taking into account the representation, if any, submitted by the employee.

39.0 REVIEW

Notwithstanding anything contained in these rules, the reviewing authority as specified in the
schedule may either on its own motion or on the application of the employee concerned, call for
the records of the case within six months of the date of the final order and after reviewing the case,
pass such order thereon as it may deem fit;

Provided that if the enhanced penalty, which the Reviewing Authority proposes to impose, is a
major penalty specified in Rule 28.2 and inquiry as provided under rule 30 has not already been
held in the case, the reviewing authority shall direct that such an inquiry be held in accordance tithe
the provisions of rule 30 and thereafter consider the record of the enquiry and pass such order as it
may deem proper. If the Reviewing Authority decides to enhance the punishment but an enquiry
has already been held in accordance with the provision of rule 30, the Reviewing authority shall

HR Manual Page 88
 give show cause notice to the employee as to why the enhanced penalty should not be imposed
upon him. The Reviewing Authority shall pass final order after taking into account the
representation, if any, submitted by the employee.

40.0 SERVICES OF NOTICES, ORDERS ETC.

40.1 Any order, notice, communication, letter or other document or process made or issued under these
rules to be serviced on an employee shall be served on such employee:-

a) By delivering it to that employee; or

b) If it cannot be so delivered or tendered, by fixing a copy on the outer door or some other
conspicuous part of the house in which that employee ordinarily resides and the serving
officer shall then return the original to the authority from which it was issued with a report
endorsed thereon or annexed thereto stating that he has affixed the copy and the name and
address of the person (if any) in whose presence the copy was so affixed; or

c) By forwarding it by registered post addressed to the employee at the place where he

ordinarily resides;

d) An endorsement by the serving officer that the employee refused to accept advice or an
endorsement by a postal employee that the employee refused to take delivery or that he
could not be found or that he was absent shall be deemed to be prima facie proof of such
service.

41.0 POWER TO RELAX TIME-LIMIT AND TO CONDONE DELAY

Save as otherwise expressly provided in these rules, the authority competent under the rules, to
make any order may, for good and sufficient reasons or if sufficient cause is shown, extend the time
specified in these rules for anything required to be done under these rules or condone any delay.

42.0 VINDICATION OF ACTS AND CHARACTER OF CORPORATION EMPLOYEE

No employee shall, except with the previous sanction of the competent authority have recourse to
any court or to press for the vindication of any official act which has been the subject matter to
adverse criticism or any attack of defamatory character.

43.0 SAVINGS

43.1 Nothing in these rules shall be construed as depriving any person to whom these rules apply of any
right of appeal which had accrued to him/her under the rules, which have been superseded by these
rules.

HR Manual Page 89
43.2 An appeal pending at the commencement of these rules against an order made before the
commencement of these rules shall be considered and orders thereon shall be made, in accordance
with these rules.

43.3 The proceedings pending at the commencement of these rules shall be continued and disposed, as
far as may be, in accordance with the provisions of these rules, as if such proceedings were
proceedings under these rules.

43.4 Any misconduct etc. committed prior to the issue of these rules which was a misconduct under the
superseded rules shall be deemed to be a misconduct under these rules.

43.5 In the absence of any provision in the Rules or for clarity, the guidelines issued on the subject
matter GoI and DPE shall be referred to.

(Approved by BoD in its 447th meeting held on 08.11.2023 and notified vide HR Circular No 08/2023 dated
15.12.2023; effective from 08.11.2023)

44.0 Notwithstanding anything contained in these rules for the purpose of disciplinary proceedings
under Rules 25 to 43 (both inclusive) wherever the terms “Disciplinary Authority” and “Competent
Authority” have been used either interchangeably or otherwise, they shall mean the authorities as
specified in the schedule appended to these rules for exercising various powers as detailed therein.

45.0 REMOVAL OF DOUBTS/INTERPRETATION

Where doubt arises as to the interpretation of any of these rules, the matter shall be referred to the
Chairman & Managing Director whose decision shall be final.

46.0 AMENDMENTS

The Board may amend, modify, rescind or add to these rules, from time to time and all such
amendments, modifications or additions shall take effect from the date stated therein.

The Board has delegated powers to CMD to amend, modify, rescind or add to these Rules, to
align PFC CDA Rules with amendments, modifications or additions, in GoI/DPE guidelines on
the subject matter, from time to time.

(Approved by BoD in its 447th meeting held on 08.11.2023 and notified vide HR Circular No 08/2023 dated
15.12.2023; effective from 08.11.2023)

47.0 RESIDUAL POWERS

Every case which is not covered by these rules or which requires relaxation of all or any of the
provisions of these rules shall be referred to the board for decision.

HR Manual Page 90
48.0 REPEAL

Any rules corresponding to these rules in force immediately before the commencement of these
rules and applicable to the employees of the Corporation, to whom these rules apply, are hereby
repealed.

Provided that any order made or action taken under the rules so replaced shall be deemed to have
been made or taken under the corresponding provisions of these rules.

Provided further that such repeal shall not affect the previous operation of the rules so repealed and
a contravention of any of the said rules shall be punishable as if it was in a contravention of these
rules.

*************

HR Manual Page 91
 Annexure - I

Schedule of Disciplinary/Appellate/Reviewing Authority

S. Category of Appointing Disciplinary Authority Appellate Reviewing

No Employees Authority Authority Authority
For For minor
major penalties
penalties

1 Workmen CGM (HR) CGM CGM (HR) ED (HR) Director

(W1 to (HR) (Comm.)
WSG)

2 Executives ED (HR) ED (HR) ED (HR) Director CMD

(E0 to E5) (Comm.)

3 Executives Director Director Director CMD Board of

(E6 and E7) (Comm.) (Comm.) (Comm.) Directors

4 Executives CMD CMD CMD Board of Board of

(E8 and E9) Directors Directors

Note: The Appointing Authority, Disciplinary Authority, Appellate Authority as well as

Reviewing Authority for Company Secretary shall be Board of Directors.

(Approved by BoD in its 359th meeting held on 24.03.2017 and notified vide HR Circular
No 13/2017 dated 10.04.2017; effective from 24.03.2017)

HR Manual Page 92
 Annexure – II
EXTRACT FROM INDIAN COMPANIES ACT, 1956

SECTION 6 - Meaning of 'Relative' - A person shall be deemed to be a relative of another if, and only if-
(a) they are members of a Hindu Undivided family; or
(b) they are husband and wife; or
(c) the one is related to the other in the manner indicated in Schedule (I-A).

SCHEDULE I-A
List of Relatives

1. Father

2. Mother (including step-mother)

3. Son (including step-son)

4. Son's wife (Daughter-in-law)

5. Daughter (including step-daughter)

6. Grand parents (both paternal & maternal)

7. Son's son (Grand son)

8. Son's son's wife (Grand daughter-in-law)

9. Son's daughter (Grand daughter)

10. Son's daughter's husband (Grand-son-in-law)

11. Daughter's husband (son-in-law)

12. Daughter's son (Grand son)

13. Daughter's son's wife (Grand daughter-in-law)

14. Daughter's daughter (Grand daughter)

15. Daughter's daughter's husband (Grand son-in-law)

16. Brother (including step-brother)

17. Brother's wife (sister-in-law)

18. Sister (including step-sister)

19. Sister's husband (brother-in-law)

HR Manual Page 93
 ANNEXURE III

FORM NO. I

STATEMENT SHOWING DETAILS OF IMMOVABLE PROPETY ON FIRST APPOINTMENT AND

ALSO ON IST JANUARY OF EACH CALENDAR YEAR
(e.g. Lands, House, Shops, other Buildings etc.)

NAME : EMP. NO. :

DESIGNATION : ORGANIZATION :

DATE OF JOINING : BASIC PAY :

S. Details/Description of property If not in own How and when Value of the Total annual Remarks
No. and its location (See notes 1 & name, state in acquired (See Property (see income from
5 below) whose name held Notes 2 & 6 note 3 below) the property
House/Building/Land No. and his/her below)
relationship, if
any to the
employee
1 2 3 4 5 6 7

Note : 1 If the property is not wholly owned the extent of share may also be indicated.

Note : 2 For the purpose of Col. 4 the term `lease’ would mean a lease of immovable property from
year to year or for any term exceeding one year of reserve yearly rent. When, however, the
lease of immovable property is obtained from a person having official dealings with the
employee, such a lease should in this column irrespective of the term of the lease whether it
is short term or long term, and the periodicity of the payment of rent.

Note : 3 In col. 5 should be shown:

a) Where the property has been acquired by purchase, mortgage or lease, the price or
premium paid for such acquisition.

b) Where it has been acquired by lease the total annual rent thereof also and
 c) Where the acquisition is by inheritance, gift or exchange the approximate value of
the property so acquired.

Note: 4 The annual return in respect of immovable property may also be submitted in this form as
on Ist January.

Note: 5 Name of District, Division, Taluka & Village in which the property is situated and also its
distinctive number etc. will be given in Col. 2.

Note: 6 Whether by purchase, mortgage, lease, inheritance, gift or otherwise & name with details
of person/persons from whom acquired. Address & connection, if any with the
person/persons concerned are also to be given in Column.

Signature __________________ Date _____________

FORM NO. II

DETAILS OF EACH TRANSACTION MADE IN FIXED DEPOSITS, MULTI OPTION DEPOSITS,

INVESTMENT IN MIS, NSC, KISAN VIKAS PATRA, SHARES, BONDS, MUTUAL FUNDS, INSURANCE
POLICIES, VEHICLES, GOLD/SILVER/PRECIOUS METALS, HOUSE HOLD ITEMS, LOANS &
ADVANCES (LEND OR BORROW MONEY) ETC. WHICH EXCEEDS TWO MONTHS’ BASIC PAY OF
THE EMPLOYEE.
NAME : EMP. NO. :

DESIGNATION : ORGANIZATION :

DATE OF JOINING : BASIC PAY :

ASSETS LIABILITIES
S. NO. DESCRI AMOUNT DATE OF HELD IN SOURCE OF ANNUAL DESCRIPTION
PTION (See notes 8 & 9 TRANSACTIO THE NAME ACQUISITI INCOME (See note 11
(See below) N OF & ON below)
notes 1 RELATIONS (INCLUDIN
to 7 HIP G
below) AMOUNT)
(See note 10
below)
1 2 3 4 5 6 7 8

PFC HR MANUAL Page 95

Date……………………
Signature…………………………….

Note: 1 In case of investment in Fixed deposits, MODs, MIS etc. Name of Bank/Post
Office/Organization with branch address, Certificate/Folio/FDR No., date of maturity and
maturity value may be mentioned in column No.2.

Note: 2 In case of investment in NSCs, Kisan Vikas Patra etc. branch address of Post Office,
Certificate/Folio No., No. of units, date of maturity and maturity value may be mentioned
in column No.2.

Note: 3 In case of investment in Shares, Bonds, Mutual Funds etc. Name of Company,
Certificate/Folio No., DP name, DP ID No., client ID No., No. of units, face value, date of
maturity and maturity value may be mentioned in column No.2.

Note: 4 In case of sell of shares and redemption of Bonds/Mutual funds, name of company, DP
name, DP ID No., client ID No., No. of units/shares, capital gain/loss may be mentioned in
column No.2.

Note: 5 In case of Insurance policies, Name of Company, policy name, policy No., sum assured,
annual premium and date of maturity may be mentioned in column No.2.

Note: 6 In case of purchase of Vehicles, type of vehicle and registration No. may be mentioned in
column No.2.

Note: 7 In case of lending of money, type of loan/advance, Cheque No., name of person with
relationship etc. may be mentioned in column No.2.

Note: 8 In case of acquisition of Precious metals, Diamonds, Stones etc. approximate value may be
mentioned in column No.3.

Note: 9 In case of acquisition of Gold/Silver ornaments etc. approximate weight may be mentioned
in column No.3.

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 Note: 10 In case of Moveable Property acquired by gift or inheritance name of person and
relationship may be mentioned in column No.6.

Note :11 In case of borrowing of money, type of loan/advance, cheque No., date of receipt, name of
Bank/Company/FI/Person, relationship, principal amount, EMI, outstanding amount etc.
may be mentioned in column No.8.

Date……………………
Signature…………………………….

FORM NO. III

STATEMENT OF ASSETS & LIABILITIES

DETAILED STATEMENT IN RESPECT OF SHARES/DEBENTURES PURCHASED UNDER

PROMOTERS/EMPLOYEES QUOTA AS ON IST JANARY OF EACH CALENDAR YEAR IN
OFFICERS OWN NAME AND ALSO THOSE HELD IN THE NAMES OF SPOUSE AND
DEPENDENT CHILDREN.

NAME : EMP. NO. :

DESIGNATION : ORGANIZATION :

DATE OF JOINING : BASIC PAY :

P.F. INDEX NO. :

Sl. No. Name No. of Face Cost of Whether How Position held at the
of the Shares value acquisition promoters/ acquired time of acquisition
Compan Employees and if the company
y Quota had any borrowing or
other facilities at that
time.
1 2 3 4 5 6 7 8

A. Self
B. Spouse and Dependent Children.

(2) Any additions/deletions to this statement as on Ist January ………… and the profit/loss incurred by me
are given below.

Place :
Date : Signature _________________
ANNEXURE

(To be submitted along with the Assets & Liabilities Statement as on Ist January of every year).

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Form for giving information where total transactions in shares, securities, debentures and investment in
mutual fund schemes etc. exceed Rs. 25,000/- during the calendar year as on Ist January
……………………..

1. Name and designation

2. (i) Scale of pay and present pay

(ii) P.F. Index No.

3. Details of each transaction made in shares,

Securities, debentures, mutual funds scheme
etc. during the calendar year.

4. Particulars of the party/firm with whom

the transaction is made.

(a) Is party related to you?

(b) Did you have dealings with the party in your

official capacity at any time or is the applicant
likely to have any dealings with you in the near
future?

5. Source or sources from which financed?

(a) Personal savings

(b) Other sources giving details.

6. Any other relevant fact which you may like to mention.

Declaration:
I hereby declare that the particulars given above are true.

Place : Signature :

Date : Designation :

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