RBE No.335/1985 Transactions – Entered into by Spouse & other Family Members

No.E(D&A)85 GS 1/4, dated 12.12.1985

Sub: Transactions entered into by the spouse and other members of family of a railway servant out of their own funds – Sub-rules (2) & (3) of Rule 18 of the Railway Services (Conduct) Rules, 1966.

1. Under Railway Board’s letter No.E(D&A)79 GS 1-5, dated 15.06.1979 clarifications in regard to sub-rules (2)&(3) of Rule 18 of the Conduct Rules were communicated.

As per these clarifications, transactions entered into by the spouse or any other member of the family of a railway servant out of his or her own funds (including Stridhan, Gifts, inheritance etc.), as distinct from the funds of the railway servant himself, in his or her own name and in his or her own right, would not attract the provisions of sub-rules (2)&(3) of Rule 18 of the Conduct Rules.

2. With reference to the aforesaid clarifications, an apprehension has been expressed that a railway servant could irregularly acquire immovable/ movable Property with money received from “dubious sources” but may not intimate such transactions to the Government on the plea that the property was his wife’s property in which his funds have not been used.

3. It is not possible to place an obligation on railway servants to inform or seek permission for transactions entered into by the spouse or other members of the family in their own right and from their own funds.

This is because sub-rules (2)&(3) of Rule 18 of the Conduct Rules are applicable only to transactions made by Railway Servant in their own name, etc. and not to those made by their spouse/ family members exclusively in their own  right, from their own funds and it will, therefore, mean going beyond the scope of the statutory rule if an obligation as aforesaid were to be placed.

It is, however, pointed out that if any case comes to notice where there are grounds to suspect that the railway servant has illegally channelized his own funds for a transaction in the name of some other person it is always open to the Competent Authority to call for such explanation and to make such investigations as may be considered necessary to establish the facts regarding the resources used for raising the funds.