CHAPTER - XIII

RITES (CONDUCT, DISCIPLINE AND APPEAL) RULES

1. Short Title and Commencement

(i) These rules may be called RITES LIMITED (CONDUCT, DISCIPLINE AND APPEAL) RULES,
1980.
(ii) They shall come into force on 1st January, 1980.
2. Application
These Rules apply to all employees except
(i) those in casual employment or paid from contingencies; and
(ii) those governed by the Standing Orders.
3. Definitions
In these rules, unless the context otherwise requires:
(a) ‘Employee’ means a person in the employment of the Company other than the casual, or
contingent staff, but includes a person on deputation to the Company. Nothing in these Rules shall
operate to deprive a person on deputation with the Company of any right or privilege to which he is
entitled under any of the laws/rules by which he is governed in his parent organisation.
(b) ‘Company’ means RITES Limited.
(c) ‘Board’ means the Board of Directors of the Company and includes, in relation to the exercise of
powers any officer to whom the Board delegates any of its powers.
(d) ‘Chairman’ means the Chairman of the Company,
(e) ‘Managing Director’ means the Managing Director of the Company.
(f) ‘Appointing Authority’ means the Board of Directors, Managing Director or any other Officer, to
whom the power of making appointment to any post or a specified category of posts has been
delegated with the approval of the Board of Directors or Managing Director.
(g) ‘Disciplinary authority’ means the authority specified as such in the Schedule appended to these
rules and competent to impose any of the penalties specified in Rule 23.
(h) ‘Competent authority’ means the authority empowered by the Board of Directors by any general or
special rule or order to discharge the function or use the powers specified in the rule or order.
(i) ‘Appellate Authority’ means the authority specified as such in the Schedule appended to these
rules.
 (j) ‘Government’ means the Government of India.
(k) ‘Reviewing Authority’ means the authority specified as such in the Schedule appended to these
rules.
(l) ‘Family’ in relation to an employee includes:
i) the wife or husband as the case may be of the employee, but does not include a wife or
husband separated from the employee by a decree or order of a court.
ii) Sons or daughters or step-sons or step-daughters of the employee and wholly dependent on
him.
iii) 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.
(m) ‘Public Servant’ shall mean and include a person as mentioned in Section 21 of the Indian Penal
Code as amended from time to time.
4. General
(1) Every employee of the Company shall at all times:
i) maintain absolute integrity and devotion to duty; and
ii) conduct himself in a manner which will enhance the reputation of the Company.
(2) Every employee of the Company holding a supervisory post shall take all possible steps to ensure
the integrity and devotion to duty of all employees under his control and authority.
5. Misconduct
Without prejudice to the generality of the term “misconduct” the following acts of omission and commission
shall be treated as misconduct:
(1) Theft, fraud or dishonesty in connection with the business or property of the Company or of
property of another person within the premises of the Company.
(2) Taking or giving bribes or any illegal gratification.
(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.
(4) Furnishing false information regarding name, age, father’s name, qualification, ability or previous
service or any other matter germane to the employment at the time of employment or during the
course of employment.
(5) Acting in a manner prejudicial to the interests of the Company.
(6) Willful insubordination or disobedience, whether or not in combination with others, of any lawful and
reasonable order of his superior.
 (7) Absence without leave or over-staying the sanctioned leave for more than four consecutive days
without sufficient grounds or proper or satisfactory explanation.
(8) Habitual late or irregular attendance.
(9) Neglect of work or negligence in the performance of duty including malingering or slowing down of
work.
(10) Damage to any property of the Company.
(11) Interference or tampering with any safety devices installed in or about the premises of the
Company.
(12) Drunkenness or riotous or disorderly or indecent behavior in the premises of the Company or
outside such premises where such behavior is related to or connected with the employment.
(13) Gambling within the premises of the Company.
(14) Commission of any act which amounts to a criminal offence involving moral turpitude.
(15) Absence from the employee’s appointed place of work without permission or sufficient cause.
(16) Commission of any act subversive of discipline or of good behaviour.
(17) Abetment of or attempt of abetment of any act which amounts to misconduct.

NOTE:

The above instances of misconduct are illustrative in nature and not exhaustive.

6. Employment of near relatives of the employees of the company in private undertaking enjoying
the patronage of the company.
(1) No employee shall use his position or influence directly or indirectly to secure employment for 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.
(2) No employee shall, except with the previous sanction of the competent authority, permit his son,
daughter or any other member of the family to accept employment with any company or firm with
which he has official dealings or with any other firm having official dealings with the Company:
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.
(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 member of his family is employed in that company or firm or under that person or if he or any member
of his family is interested in such matter or contract in any other manner 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 instructions of the authority to whom the reference is
made.
7. Taking part in Demonstrations:
No employee shall engage himself or participate in any demonstration or strike which is illegal or involves
incitement to an offence.
7A. Political activities
No employee shall participate in any political activities of the following kind:
(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 any political
nature;
(Iii) to take part in an election to any legislature or local authority.
8. Connection with Dress or radio
(1) No employee shall, except with the previous sanction of the competent authority or in the bonafide
discharge of his duties, participate in a radio broadcast or contribute any article or write any letter
either in his own name or anonymously, pseudonymously, or in the name of any other person to
any newspaper or periodical on a subject, which may have a bearing on the affairs of the
Company.
(2) No employee, while in service or after his retirement, retrenchment or resignation or discharge,
shall make public or publish any documents, papers or information which might have come into
his possession in his official capacity, without the prior sanction of the Company:
Provided that no sanction under this rule is required in the case of articles, letters, etc. written for the house
journals and other publications of the Company in which case the Editorial Board or other authority is vested
with the powers for selecting and editing them for publication.
9. Criticism of Government and the Company
No employee shall, in any radio broadcast or in any document published under his name or in the name of
any other person or in any communication to the press, or in any public utterances, make any statement:
(a) which has the effect of adverse criticism of any policy or action of the Central or State
Governments or of the Company; or
 b) which is capable of embarrassing the relations between the Company and the public.
Provided that nothing in these rules shall apply to any statement made or views expressed by an employee,
of purely factual nature, which are not considered to be confidential in his official capacity or in due
performance of the duties assigned to him.

10. Evidence before committee or any other authority

(1) Save as provided in sub-rule (2), no employee of the Company shall, except with the previous
sanction of the competent authority, give evidence in connection with any enquiry conducted by
any person, committee or authority.
(2) Nothing in this rule shall apply to:
a) evidence given at any enquiry before an authority appointed by the Government, Parliament or
State Legislature; and
b) evidence given in any judicial enquiry.

11. Unauthorised communication of information

No employee shall, except in accordance with any general or special order of the Company 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 an employee or any other person to whom he is not
authorised to communicate such document or information.
12. No employee of the Company shall :
i) give or take or abet the giving or taking of dowry;
ii) demand directly or indirectly from the parents or guardian of a bride or bridegroom, as the case
may be, dowry.
Explanation
For the purpose of this rule, ‘dowry’ has the same meaning as in the Dowry Prohibition Act, 1961 (Act
28 of 1961).
13. Private trade or employment
(1) No employee shall except with the previous sanction of the competent authority, engage directly
or indirectly in any trade or business or undertake any other employment.
Provided that an employee may, without such sanction, undertake honorary work of a social or charitable
nature or occasional work of a literary, artistic or scientific character, subject to the condition that his official
duties do not thereby suffer.
(2) Every employee shall report to the competent authority, if any member of his family is engaged in
a trade or business or owns or manages an insurance agency or commission agency.
(3) No employee shall, without the previous 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 (2 of 1956) or
any other law for the time being in force.
Provided that an employee may take part in the registration, promotion or management of a co-
operative society, registered under the Co-operative Societies Act, 1912, or of a literary, scientific
or charitable society registered under the Societies Registration Act, 1860.
(4) No employee may accept any fee or any pecuniary advantage for any work done by him for any
public body or any private person without the sanction of the Company, if (a) such work has a
bearing on the affairs of the Company, or (b) if the amount exceeds Rs. 2000/- in a year.

14. Investment, lending and borrowing

No employee shall, save in the ordinary course of business with a bank, the Life Insurance Corporation or a
firm of standing, borrow money from or lend money to or otherwise place himself under pecuniary obligation
to any person with whom he has or is likely to have official dealings or permit any such borrowing, lending or
pecuniary obligation in his name or for his benefit or for the benefit of any member of his family.

15. Habitual indebtedness

An employee shall avoid habitual indebtedness.

16. Movable. immovable and valuable property

(1) No employee 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 own name or in the name of any member of his family.
(2) No employee shall, except with the previous 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 subordinate.
(3) Every employee shall report to the competent authority every transaction concerning movable
property owned or held by him in his own name or in the name of a member of his family, if the
value of such property exceeds an amount of Rs.10,000/- in the case of employees of the rank of
Assistant Manager and above or Rs. 5,000/- in the case of others.
Explanation I
The term “every transaction concerning movable property owned or held by him” includes all
transactions of sale or purchase.
For the purpose of this sub-rule, the definition of movable property would include:
a) Jewelry, insurance policies and annual premium of which exceeds
Rs. 15,000/- or Rs. 10,000/- as the case may be or one-sixth of the total annual emoluments
received from the Company by the employee whichever is less, shares, securities and
debentures.
b) loans advanced by such employee whether secured or not.
c) motor cars, motor cycles, horses or any other means of conveyance, and
d) refrigerators, radios, radiograms and television sets.
Explanation II:
Transactions entered into by the spouse or any other member of family of an employee of the
Company out of his or her own funds including stridhan, gifts, inheritance etc. as distinct from the
funds of the employee of the Company himself, in his or her own name and in his or her own right,
would not attract the provisions of the above sub-rule.
Every employee shall, on first appointment in the Company, submit a return of assets and
liabilities in the prescribed form giving the particulars regarding:
a) the immovable property inherited by him, or owned or acquired by him, held by him on lease or
mortgage, either in his own name or in the name of any member of his family or in the name of
any other person:
b) shares, debentures and cash including bank deposits inherited by him or similarly owned
acquired, or held by him;
c) other movable property inherited by him or similarly owned acquired or held by him if the value
of such property exceeds Rs.15,000/- or
Rs. 10,000/- as the case may be.
d) debts and other liabilities incurred by him directly or indirectly.
(5) Every employee shall every year submit a return as on the first day of January of immovable
property inherited/owned/acquired by him.
 (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 and complete statement of such movable or
immovable property held or acquired by him or on his behalf or by any member of his 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.

17. Canvassing of non-official or other influence

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 service in the Company.

18. Bigamous marriages

(1) No employee shall enter into, or contract, a marriage with a person having a spouse living; and
(2) No employee, having a spouse living, shall enter into or contract, a marriage with any person :
Provided that the Board may permit an employee to enter into, or contract any such marriage as
is referred to in clause (1) or clause (2) if it is satisfied that
(a) such marriage is permissible under the personal law applicable to such employee and the
other party to the marriage;
(b) there are other grounds for doing so; and
(3) an employee who has married or marries a person other than that of Indian nationality shall
forthwith intimate the fact to the Company.

19. Consumption of intoxicating drinks and drugs

An employee shall take due care that:

i) the performance of his duties is not affected in any way by the influence of any intoxicating drink
or drug.
ii) he does not appear in a public place in a state of intoxication.
19.1 Sexual Harassment of Women
i) No employee shall indulge in any act of sexual harassment of any women at her work place.
ii) Every employee who is incharge of a work place shall take appropriate step to prevent sexual
harassment to any woman at such work place.
Explanation - for the purpose of this rule, “Sexual harassment” includes
such unwelcome sexually determined behavior, 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

20. Suspension

(1) The appointing authority or any authority to which it is subordinate or the disciplinary authority or
any authority empowered in that behalf by the Board or Managing Director by general or special
order may place an employee under suspension:
(a) where disciplinary proceeding against him is contemplated or is pending; or
(b) where case against him in respect of any criminal offense is under investigation or trial.
(2) An employee who is detained in custody, whether on a criminal charge or otherwise, for a period
exceeding 48 hours, shall be deemed to have been suspended with effect from the date of
detention, by an order of the appointing authority, and shall remain under suspension until further
orders.
(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 inquiry or action or with any other directions, the order of his 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.
(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 inquiry
against him on the allegations on which the 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.
Provided that no such further inquiry shall be ordered unless it is intended to meet a situation
where the court has passed an order purely on technical grounds without going into the merits of
the case.
21. Subsistence allowance
(1) An employee under suspension shall be entitled to draw subsistence allowance equal to 50 per
cent 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 vacation. In addition he shall be
entitled to Dearness Allowance admissible on such subsistence allowance and any other
compensatory allowance of which he was in receipt 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.
(2) Where the period of suspension exceeds six 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 six months as follows:

(i) The amount of subsistence allowance may be increased to 75% of basic pay and allowances
thereon, 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;
(ii) the amount of subsistence allowance may be reduced to 25% of basic pay and allowances
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.
(3) If an employee is arrested by the Police on a criminal charge and bail is not granted, no
subsistence allowance is payable. On grant of bail, if the competent authority decides to continue
the suspension the employee shall be entitled to subsistence allowance from the date he is
granted bail.
22. Treatment of the period of suspension
(1) When the employee under suspension is reinstated, the disciplinary authority may grant to him 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 23 full
pay and allowances which he would have been entitled to if he had not been suspended, less
the subsistence allowance already paid to him; and
(b) if, otherwise, such proportion of pay and allowances as the disciplinary authority may
prescribe.
(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 disciplinary authority so directs.
23. Penalties

The following penalties may be imposed, on an employee, as hereinafter provided, for misconduct
committed by him or for any other good and sufficient reasons:
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 him of the whole or part of any
pecuniary loss caused to the Company by negligence or breach of orders.
MAJOR PENALTIES
(e) Reduction to a lower grade or post, or to a lower stage in a time scale.
(f) Removal from service which shall not be a disqualification for future employment.
(g) Dismissal.
Explanation
The following shall not amount to a penalty within the meaning of this rule:
(i) Withholding of increment of an employee on account of his work being found unsatisfactory or not
being of the required standard, or for failure to pass a prescribed test or examination.
(ii) Stoppage of an employee at the efficiency bar in a time scale, on the ground of his 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 may be eligible for consideration but for which he is found unsuitable after
consideration of his case.
(iv) Reversion to a lower grade or post of an employee officiating in a higher grade or post, on the
ground that he is considered after trial, to be unsuitable for such higher grade or post, or on
administrative grounds unconnected with his conduct.
(v) Reversion to his 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.
(vi) Termination of service :
(a) of an employee appointed on probation during or at the end of probation;
 (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 was appointed, or earlier in accordance
with the terms of his appointment;
(c) of an employee appointed under a contract or agreement, in accordance with the terms of
such contract or agreement; and
(d) of an employee on reduction of establishment.
(e) of an employee declared on medical grounds to be unfit for further service in any capacity by
being given three months notice or pay in lieu thereof in the case of a regular employee and
one month’s notice or pay in lieu thereof in the case of a temporary employee.
(f) of an employee who remains unauthorized absent from duty for 90 days or more.
NOTE : In cases coming under sub clause (f) the following procedure shall be followed:
1. The employee concerned shall be given a show cause notice to explain his/her conduct
satisfactorily within 15 days of the receipt of the notice by him/her.
2. A screening Committee of two Directors shall be constituted to review the conduct of the
employee and his/her explanation if any and record its decision on the question of termination of
the services of the employee.
3. Reasons for its decision shall be recorded by the Screening Committee.
4. No further inquiries shall be held.

24. Authority competent to impose penalties

The Disciplinary Authority as specified in the Schedule, or any authority higher than it may impose any of the
penalties specified in Rule 23 on any employee.

25. Procedure for imposing major penalties

(1) No order imposing any of the major penalties specified in Clauses (e), (f) and (g) of Rule 23 shall
be made except after an inquiry is held in accordance with this rule.
(2) Whenever the disciplinary authority is of the opinion that there are grounds for inquiring into the
truth of any imputation of misconduct or misbehavior against an employee, it may itself enquire
into, or appoint another public servant (hereinafter called the inquiring authority) to inquire into the
truth thereof.
(3) Where it is proposed to hold an inquiry, the disciplinary authority shall frame definite
charges on the basis of the allegations against the employee. The
charges together with a statement of the allegations, on which they are based, a list of documents by which
and a list of witnesses by whom, the articles of charges are proposed to be sustained, shall be
communicated in writing to the employee, who shall be required to submit within such time as may
be specified by the Disciplinary Authority (not exceeding 15 days), a written statement whether he
admits or denies any of or all the Articles of Charge.
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.
(4) 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 public
servant appointed as an Inquiring Authority under sub-clause (2).
Provided that it may not be necessary to hold an inquiry in respect of the charges admitted by the
employee in his written statement. The disciplinary authority shall, however. Record its findings on
each such charge.
(5) Where the disciplinary authority itself inquires or appoints an inquiring authority for holding an
inquiry, it may. by an order appoint another employee to be known as the “Presenting Officer” to
present on its behalf the case in support of the articles of charge.
(6) The employee charged may take the assistance of any other employee but may not engage a
legal practitioner for the purpose.
(7) On the date fixed by the inquiring authority, the employee shall appear before the inquiring
authority at the time, place and date specified in the notice. The inquiring authority shall ask the
employee whether he pleads guilty or has any defence to make and if he 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 return a finding of fault
in respect of those articles of charge to which the employee concerned pleads guilty.
(8) 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 defence:
(i) inspect the documents listed with the charge-sheet;
(ii) submit a list of additional documents and witnesses that he wants to examine; and
(iii) be supplied with the copies of the statements of witnesses, if any, listed in the charge sheet.
 NOTE: Relevance of the additional documents and the witnesses referred to in sub-clause 8(ii)
above to the charges under inquiry will have to be given by the employee concerned and the
documents and the witnesses shall be summoned only if the inquiring authority is satisfied about
their relevance to the charges under inquiry.
(9) The 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.
(10) 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 Company. In the event, it shall inform the Inquiring Authority accordingly.
(11) 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 leave of the Inquiring Authority. The Inquiring Authority may also put such questions to
the witnesses as it thinks fit.
(12) Before the close of the prosecution case, the inquiring authority may, in its discretion, allow the
Presenting Officer to produce evidence not included in the charge sheet or may itself call for new
evidence or recall or re-examine any witness. In such case the employee shall be given
opportunity to inspect the documentary evidence before it is taken on record; or to cross-examine
a witness who has been so summoned.
(13) When the case for the disciplinary authority is closed, the employee may be required to state his
defence, orally or in writing, as he may prefer. If the defence is made orally, it shall be recorded
and the employee 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.
(14) The evidence on behalf of the employee shall then be produced. The employee may examine
himself in his own behalf if he so prefers. The witnesses produced by the employee shall then be
examined where the Inquiring Authority considers them relevant. They shall be liable to cross-
examination, reexamination and examination by the Inquiring Authority according to the provisions
applicable to the witnesses for the disciplinary authority.
 (15) The Inquiring Authority may, after the employee closes his case, and shall, if the employee has
not examined himself, generally question him on the circumstances appearing against him in the
evidence for the purpose of enabling the employee to explain any circumstance appearing in the
evidence against him.
(16) The Inquiring Authority may, after completion of the production of evidence, hear the Presenting
Officer, if any, appointed, and the employee or permit them to file written briefs of their respective
cases, if they so desire.
(17) If the employee does not submit the written statement of defence referred to in sub-rule (3) 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.
(18) 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 witnesses as hereinbefore
provided.
(19) (I) After the conclusion of inquiry, a 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
misbehavior;
(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 finding 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 articles of charges, it may record its findings on such article of
charge.
Provided that the findings on such articles of charge should not be recorded unless the
delinquent employee has either admitted the facts on which the
article of charge is based or has had a reasonable opportunity of defending himself against such an article of
charge.
(ii) The Inquiry 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 sub-rule (i) above;
(b) the written statement of defence, if any submitted by the employee referred to in sub-rule
(13);
(c) the oral and documentary evidence produced in the course of the inquiry;
(d) written briefs referred to in sub-rule (16), if any; and
(e) the orders if any, made by the disciplinary authority and the inquiring authority in regard to
the inquiry.

26. Action on the inquiry report

(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 Inquiring Authority for fresh or further inquiry and report and
the Inquiring Authority shall thereupon proceed to hold the further inquiry according to the
provisions of Rule 25 as far as may be.
(2) The disciplinary authority shall, if it disagrees with the findings of the inquiring authority on any
article of charge, record its reasons for such disagreement and record its own findings on such
charge if the evidence on record is sufficient for the purpose.
(3) 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 23 should be imposed on the employee it
shall, notwithstanding anything contained in Rule 27, make an order imposing such penalty.
(4) 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.
27. Procedure for imposing Minor Penalties
(1) Where it is proposed to impose any of the minor penalties specified in
clauses (a) to (d) of Rule 23, the employee concerned shall be informed in writing of the
imputations of misconduct or misbehavior against him and given an opportunity to
submit his written statement of defence within a specified
period not exceeding 15 days. The defence statement, if any, submitted by the employee shall be taken into
consideration by the disciplinary authority before passing orders.
(2) The record of the proceedings shall include:
(i) a copy of the statement of imputations of misconduct or misbehavior delivered to the
employee;
(ii) his defence statement, if any, and
(iii) the orders of the disciplinary authority together with the reason therefor.

28. Communication of orders

Orders made by the Disciplinary Authority under Rule 26 or Rule 27 shall be communicated to the employee
concerned. who shall also be supplied with a copy of the report of inquiry, if any.

29. 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 directing that disciplinary proceedings against all of them may be
taken in a common proceeding and the specified authority may function as the disciplinary authority for the
purpose of such common proceedings.

30. Special procedure in certain cases

Notwithstanding anything contained in Rule 25, 26 or 27, the disciplinary authority may impose any of the
penalties specified in Rule 23 in any of the following circumstances :
(i) the employee has been convicted on a criminal charge, or on the strength of facts or conclusions
arrived at by a judicial trial; or
(ii) 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.

31. Employees on deputation from the central Government or the state Government etc.

(1) Where an order of suspension is made or disciplinary proceeding is

commenced against an employee, who is on deputation to the Company from the Central
or State Government or another Public Sector Undertaking, or a local authority, 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
suspension, or the commencement of the disciplinary proceeding, as the case may be.
(2) In the light of the findings in the disciplinary proceeding taken against the employee:
(a) If the Disciplinary Authority is of the opinion that any of the minor penalties should be imposed
on him, 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 placed 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 services at the disposal of the Lending Authority and transmit to it
the proceedings of the enquiry for such action as it deems necessary.

(3) If the employee submits an appeal against an order imposing a minor penalty on him under sub-
rule (2) (a), 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 placed 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.

32. Appeals

(i) An employee may appeal against an order imposing upon him any of the penalties specified in
Rule 23 or against the order of suspension referred to in Rule 20.
(ii) An appeal shall be preferred within one month from the date of communication of the order
appealed against. The appeal shall be addressed to the Appellate Authority specified in the
schedule and submitted to the authority whose order is appealed against. The authority whose
order is appealed against shall forward the appeal together with its comments and the records of
the case to the appellate authority within 15 days. The appellate authority shall consider whether
the findings are justified or 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 with such direction as it 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 clauses (e), (f) and (g) of Rule 23 and an inquiry as provided in Rule 25 has
not already been held in the case, the appellate authority shall direct that such an enquiry be held
in accordance with the provisions of Rule 25 and thereafter consider the records of the inquiry and
pass such orders as it may deem proper. If the appellate authority decides to enhance the
punishment but an enquiry has already been held as provided in Rule 25, the appellate authority
shall give a show cause notice to the employee as to why the enhanced 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.

33. Review

Notwithstanding anything contained in these Rules, the reviewing authority as specified in the schedule may
call for the record 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 clauses (e), (f) of (g) of Rule 23 and an enquiry as provided under Rule 25 has not already bean
held in the case, the reviewing authority shall direct that such an enquiry be held in accordance with the
provisions of Rule 25 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 provisions of Rule 25, the reviewing authority shall 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.

33 A. Rules for retiring at the age of 50 years

(1) Where an employee has attained the age of 50 years and where the Board of Directors in the
case of employees in Grade Rs. 16400-20000 (or other equivalent grade) and above and the
Managing Director in the case of other employees is satisfied that the employee is:
(i) medically unfit to continue in service;
(ii) inefficient; or
(iii) of doubtful integrity;
then such an employee may be prematurely retired from service with the approval of the Board of
Directors or the Managing Director as the case may be subject to the procedure prescribed in this
rule being followed.
(2) (I) If an employee has been on leave on medical grounds for a period of 120 days or more during
the continuous period of 6 months, then the Board of Directors or the Managing Director as.the
case may be, may refer him to a Medical Board consisting of three doctors of appropriate
specialisation for check up and report on:
(a) the disease he is suffering from
(b) whether it is curable or incurable
(c) whether the disease is infectious or contagious
(d) in case of curable disease, whether the person is likely to be fit to resume his normal
duties within a period of 12 months.
(ii) If the employee is not fit to resume his duties within a period of 12 months or in cases of
employees, suffering from incurable or infectious / contagious disease or suffering from lunacy
or mental derangement, the Medical Board may certify in regard to his fitness or otherwise to
be continued in service.
(iii) If the Medical Board certifies that the employee is not medically fit to continue in service, then
he is liable to be prematurely retired with the approval of Board of Directors or the Managing
Director as the case may be.
(3) (i) A Committee of 3 Directors shall by constituted to consider and recommend the fitness or
otherwise of employees in grade Rs. 14300-18300 (or other equivalent grade) and above to
continue in service on grounds of inefficiency or doubtful integrity. In the case of officers below
the aforesaid grade, committee will be constituted, as indicated below to deal with the cases
arising out of the above review.

S. Grade of Staff Composition of Disciplinary Appellate

No. Committee Authority Authority

1. Upto Rs. 4000-6000 3 GMs Director MD

2. Above (1) and upto 3 GGMs Director MD
Rs. 6500-10500
3. Above 2 and upto 3 EDs Director MD
Rs. 12000-16500
4. Above 3 and upto 3 Director MD BOD
Rs. 16400-20000
(JGM and AGM)
5. Above (4), i.e., 3 Director BOD BOD
Rs. 18400-22400
(GM/GGM/ED)
1 (ii) The report of the Committee of 3 Directors or 3 Executive Directors Group General Managers /
General Managers shall be submitted through proper channel to the competent authority,
namely Board of Directors or the Managing Director, as the case may be, who shall take a
decision on the question of premature retirement or continuance in service of the employee
concerned.

34. Service of orders. notices. etc.

Every order, notice and other process made or issued under these Rules shall be served in person on the
employee concerned or communicated to him by registered post at the last known address.

35. Power to relax time-limit and to condone delay:

Save as otherwise expressly provided for in these rules, the authority competent under these 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.
36. Savings
(1) 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.
(2) The proceedings pending at the commencement of the rules shall be continued and disposed of
as far as may be, in accordance with the provisions of these rules, as if such proceedings were
proceedings under these Rules.

37. Removal of Doubts :

Where a doubt arises as to the interpretation of any of these Rules, the decision of the Managing Director of
the Company shall be final.

38. Amendments

The Board may amend, modify or add to these rules, from time to time, and all such amendments,
modifications or additions shall take effect from the date stated therein.
 (4)

(1) (2)

1. All Group ‘D’ category employees vlz., Messenger, Field Helper, Mali, Khalasl, Farash, Sweeper’
Safaiwala, Record Sorter, Messenger -cum-Driver, etc.
2. Group ‘C’ employees In the pay scales of Rs.3050-4590 and Rs.4000-6000or equivalent IDA grades
viz., Jr. Asstt-cum-Typist, Asstt, Stenographer (PA), Receptionist, Roneo/Xerox operator, Vehicle Driver,
Lab. Asstt., Carpenter, Plumber, Fitter; Welder, Electrician, Survey Asstt., Geo-Tech Asstt., DEO, (Jr)
Tracer, Jr” Draftsman, Driller, Console Operator, Telecom Mechanic, Sr. Record Sorter, JDEO , KPO.
etc.
3. Group ‘C’, ‘B’ & ‘A’ employees in grade Rs. 5000-8000 (or in equivalent IDA grade) and above upto and
including those in grade Rs. 8000-13500 (or equivalent IDA grade) viz., JE, SO,