( 1 ) THE petitioner, S K Bardewa, was a permanent member of Sikkim State Civil Service and was working as Additional Secretary, Programme Implementation and Evaluation Department when disci phnary proceedings were initiated against him vide Memo No 538/gen/dop dated 5-6-1996 on the charge that while serving as Deputy Director, Information and Public Relation Department, Government of Sikkim he applied for and secured a loan of Rs 2 lakhs from the Sikkim Industrial Development and Investment Corporation Ltd , (SID1co) Gangtok in his capacity as proprietor of M/s Himalchuh Hotel, Development Area and engaged himself directly in Trade and Business in violation of rule 16 of Sikkim Govt Servants (Conduct) Rules, 1981 Enquiry was conducted by Shri M. K. Pradhan who submitted his report on 24-1-1997 Annexure P-7 It appears from the report that no oral evidence was produced before the Enquiry Officer and he gave his findings on the basis of the documents placed before him He recorded the following findings (I) The petitioner had applied for loan for construciton of a hotel in the name of Himalchuh in Development Area after completing due formalities as per SIDICO requ