FORM FC--2
[See Rule 3(b)].

Application for seeking prior permission of the Central Government to accept foreign hospitality.

[Section 9 read with Sections 10(a) and 11(I) of the Foreign Contribution (Regulation) Act, 1976].

1. Name in full (in block letters)

2. Date of Birth

3. Name of father.

4. Present address.

5. Permanent address.

6. Passport Particulars (if already in possession of)

7. Status.

Member of a Legislature.

Office bearer of a political party.

Employee of a Company/Corporations

Any person or class of person

Legal Commentary on Section 33 of the All India Services (Conduct) Rules, 1968

Introduction

Section 33 of the All India Services (Conduct) Rules, 1968, deals with offences committed by companies and the liability of persons responsible for conduct of the business at the time of offence. It forms a critical component in establishing vicarious liability and ensuring accountability of individuals in managerial positions within companies, especially in cases involving offences under the Insecticides Act, 1968, and similar statutes.

What does Section 33 Say

Section 33(1) states that if an offence under the Act is committed by a company, every person who was in charge of or responsible for the conduct of the company's business at the time shall be deemed guilty, unless he proves the offence was committed without his knowledge or he exercised all due diligence to prevent it. Subsection (2) extends liability to directors, managers, secretaries, or officers if the offence was committed with their consent, connivance, or attributable to their neglect.

Essential Ingredients

• Offence committed by a company.
• Person in charge of or responsible for the conduct of the company's business at the time of offence.
• The burden of proof shifts to the accused to establish lack of knowledge or due diligence.
• Additional liability for directors or officers if offence was with their consent, connivance, or neglect.
• Specific averments in the complaint regarding the individual's role are mandatory for establishing liability.

Scope of Section 33

• Applies to offences committed by companies, including firms and associations of individuals.
• Encompasses managerial and responsible officers, not merely the corporate entity.
• Emphasizes vicarious liability, making individuals accountable for offences in their capacity as responsible persons.
• The liability hinges on the role and responsibility of the individual at the time of offence, not merely their designation.
• The section is invoked mainly in cases involving regulatory offences, such as those under the Insecticides Act, 1968, and similar statutes.

Punishment for Section 33

• The section itself does not prescribe specific punishments but provides the basis for criminal liability.
• Penalties are as per the substantive offence under the relevant Act, which may include fines, imprisonment, or both.
• The liability of responsible persons can lead to prosecution, conviction, and consequent penalties as provided under the Act.

Legal Comments

• Liability - Section 33 establishes vicarious liability for offences committed by companies, requiring proof of responsibility at the time of offence. [Case: M/s Cheminova India Ltd. & Anr. v. State of Punjab & Anr., 2021 (3) RCR (Criminal) 750]

• Responsibility - The section mandates that persons in charge or responsible for conduct of business at the time are liable unless they prove lack of knowledge or due diligence. [Case: K. M. Joseph, J., Order in Writ Petition]

• Vicarious Liability - Cannot be based solely on designation; specific averments regarding the individual's role are necessary for prosecution. [Case: Insecticides Act, 1968, Section 33(1)]

• Prosecuting Officers - The complaint must contain explicit allegations that the accused was in charge or responsible for conduct of the business. [Case: Insecticides Act, 1968, Section 33(1)]

• Burden of Proof - On the accused to prove that offence was committed without his knowledge or due diligence. [Case: M/s Cheminova India Ltd. & Anr. v. State of Punjab & Anr.]

• Role of Complaint - Specific averments about the accused’s role are essential; vague allegations lead to quashing of proceedings. [Case: Section 33, Insecticides Act, 1968]

• Corporate Liability - The company itself is liable, but individual liability requires proof of role, negligence, or connivance. [Case: Amarjit Singh v. State of Punjab]

• Prosecution Sanction - Must be obtained against specific responsible persons; lack of sanction against an individual can render proceedings invalid. [Case: Section 31 of Insecticides Act, 1968]

• Legal Precedent - Courts have consistently held that vicarious liability under Section 33 requires clear evidence of responsibility, not mere corporate existence. [Case: M/s Cheminova India Ltd., supra]

• Offence by a Person in Charge - The person must have been in actual charge or responsible for the conduct of business at the time of offence, not merely in a managerial position. [Case: Section 33(2), Insecticides Act, 1968]

• Responsibility & Due Diligence - The accused can escape liability if he proves he exercised all due diligence to prevent offence. [Case: M/s Cheminova India Ltd., supra]

• Legal Formalities - The complaint must specify the role and responsibility of the accused; failure to do so leads to quashing. [Case: Section 33, Insecticides Act, 1968]

• Legal Interpretation - The section’s scope is wide but must be read in conjunction with the specific allegations and evidence. [Case: M/s Cheminova India Ltd., supra]

• Accountability - Ensures that responsible officers cannot evade liability by corporate shield alone; active role or negligence is necessary for prosecution. [Case: Amarjit Singh v. State of Punjab]

• Scope in Regulatory Offences - Particularly relevant in offences under environmental, health, and safety laws where corporate responsibility is invoked. [Case: Insecticides Act, 1968]

• Legal Safeguards - Accused can defend by proving absence of knowledge or due diligence, emphasizing the importance of procedural fairness. [Case: M/s Cheminova India Ltd., supra]

• Summary - Section 33 acts as a tool for holding responsible officers accountable, but prosecution must be based on specific facts establishing their role, responsibility, and culpability.

Conclusion

Section 33 of the All India Services (Conduct) Rules, 1968, plays a vital role in ensuring accountability of officers responsible for offences committed by companies. Its effective application hinges on clear allegations, proof of responsibility, and adherence to procedural requirements, thereby maintaining the integrity of regulatory enforcement and corporate accountability. Judicial precedents reinforce the necessity of specific averments and proof of role to sustain prosecution under this section.

S.1 Short title and commencement.--

(1) These rules may be called the All India Services (Conduct) Rules, 1968.

(2) They shall come into force on the date of their publication in the Official Gazette.

S.2 Definitions.--

In these rules, unless the context otherwise requires--

(a) "Government" means--

(i) in the case of a member of the Service serving in connection with the affairs of the Union, the Central Government; or

(ii) in the case of a member of the Service serving under a Foreign Government or outside India (whether on duty or on leave), the Central Government; or (iii) in the case of a member of the Service serving in connection with the affairs of a State, the Government of that State;

Explanation.-- A member of the Service whose services are placed at the disposal of a company, corporation or other organisation or a local authority by the Central Government or the Government or the Government of a State shall for the purpose of these rules, be deemed to be a member of the Service serving in connection with the affairs of the Union or in connection with the affairs of that State, as the case may be, notwithstanding that his salary is drawn from the source

S.3 General.--

(1) Every member of the Service shall at all times maintain absolute integrity and devotion to duty and shall do nothing which is unbecoming of a member of the Service.

¹[(1A) Every member of the Service shall maintain:--

(i) high ethical standards, integrity and honesty;

(ii) political neutrality;

(iii) promoting of the principles of merit, fairness and impartiality in the discharge of duties;

(iv) accountability and transparency;

(v) responsiveness to the public, particularly to the weaker section;

(vi) courtesy and good behavior with the public.]

(2) Every member of the Service shall take all possible steps to ensure integrity of, and devotion to duty by, all Government servants for the time being under his control and authority.

²[(2A) Every member of the service shall in the discharge of his duties act in a courteous manner and shall not adopt dilatory tactics in his dealings with the public or

S.4 Employment of near relatives in companies or firms.--

(1) No member of the Service shall use his position or influence directly or indirectly to secure employment for any member of his family with any private undertaking or ¹[Non-Government Organisation].

(2)(a) No member of the Service shall, except with the previous sanction of the Government, permit (a member of his family) to accept employment with any private undertaking or ²[NGO] having official dealings with the Government.

Provided that where the acceptance of such employment cannot await the sanction of the Government or is otherwise considered urgent, the matter shall be reported to the Government, and the employment may be accepted provisionally subject to the sanction of the Government.

(b) A member of the Service shall, as soon as he becomes aware of the fact of acceptance by a member of his family of an employment with any private undertaking or ³[NGO] report to the Government the fact of such acceptance and also wheth

S.5 Taking part in politics and elections.--

(1) No member of the Service shall be a member of, or be otherwise associated with, any political party or any organization which takes part in politics, nor shall he take part in, or subscribe in aid of, or assist in any other manner, any political movement or political activity.

(2) It shall be the duty of every member of the Service to endeavour to prevent any member of his family from taking part in or subscribing in aid of or assisting in any other manner, any movement of, activity which is, or tends directly or indirectly to be subversive of the Government as by law established, and where a member of the Service is unable to prevent member of his family from taking part in or subscribing in aid of, or assisting in any other manner, any such movement of activity, he shall make a report to that effect to the Government.

(3) If any question arises whether any movement or activity falls within the scope of this rule, the question shall be referred to the Government f

S.6 Connection with press or radio.--

Previous sanction of the Government shall not be required when the member of the service, in the bona fide discharge of his duties or otherwise, publishes a book or contributes to or participates in a public media.

Provided that he shall observe the provisions of rules and at all times make it clear that the views expressed, are of his own and not those of the Government.]

S.7 Criticism of Government.--

No member of the Service shall, in any radio broadcast ¹[or communication over any public media] or in any document published anonymously, pseudonymously or in his own name or in the name of any other person or in any communication to the press or in any public utterance, make any statement of fact or opinion,--

i. Which has the effect of an adverse criticism of any current or recent policy or action of the Central Government or a State Government; or

ii. which is capable of embarrassing the relations between the Central Government and any State Government; or

iii. which is capable of embarrassing the relations between the Central Government and the Government of any Foreign State:

Provided that nothing in this rule shall apply to any statement made or views expressed by a member of the Service in his official capacity and in the due performance of the duties assigned to him.

(GOI Instructions : D.P. & A.R. letter No. 11017/9/75-AIS(III)

S.8 Evidence before committees, etc..--

(1) Save as provided in sub-rule (3), no member of the Service shall except with the previous sanction of the Government, give evidence in connection with any inquiry conducted by any person, committee or other authority.

(2) Where any sanction has been accorded under sub-rule (1) no member of the Service giving such evidence shall criticize the policy or any action of the Central Government or of a State Government.

(3) Nothing in this rule shall apply to--

(a) evidence given at any inquiry before an authority appointed by the Government, or by Parliament or by a State Legislature; or

(b) evidence given in any judicial inquiry; or

(c) evidence given at departmental inquiry ordered by any authority subordinate to the Government.

(4) No member of the Service giving any evidence referred to in sub-rule (3) shall give publicity to such evidence.

S.9 Unauthorised communication of information.--

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

Explanation.-- Quotation by a member of the Service (in his representations 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 authorised to have access, or which he is not authorised to keep in his personal custody or for personal purposes, shall amount to authorised communication of information within the meaning of this rule.

S.10 Subscriptions.--

No member of the Service shall, except with the previous sanction of the Government or of such authority as may be empowered by it in his behalf ask for, or accept, contributions to or otherwise associate himself with the raising of any fund or other collections in cash or in kind in pursuance of any object whatsoever.

S.11 Gifts.--

(1) A member of the service may accept gifts from his near relatives or from his personal friends having no official dealings with them, on occasions such as wedding, anniversaries, funerals and religious functions when the making of gifts is in conformity with the prevailing religious and social practice, but he shall make a report to the Government if the value of such gift exceeds ²[Rs.25,000/-].

Explanation.-- For the purposes of this rule "gift" includes free transport, free boarding, free lodging or any other service or pecuniary advantage when provided by a person other than a near relative or personal friend having no official dealings with the member of the Service but does not include a casual meal, casual lift or other social hospitality.

(2) Save as otherwise provided in sub-rule (1), no member of the service shall accept any gift without the sanction of the Government if the value of gift exceeds ³[Rs. 5,000/'].

(3) Memb

S.12 Giving or taking of dowry.--

No member of the Service shall--

(i) give or take or abet the giving or taking of dowry; or

(ii) demand, directly or indirectly, from the parents or guardian of a bride or bridegroom, as the case may be, any dowry.

Explanation.-- For the purpose of the rule, "dowry" has the same meaning as in the Dowry Prohibition Act, 1961 (28 of 1961).

S.13 Public demonstrations in honour of Government Servants.--

(1) No member of the Service shall except with the previous sanction of the Government, receive any complimentary or valedictory address or accept any testimonial or attend any meeting or entertainment held in his honour or in the honour of any other Government Servant:

Provided that nothing in this rule shall apply to--

(i) a farewell entertainment of a substantially private and informal character held in honour of a member of the Service or any other Government servant on the occasion of his retirement or transfer or of any person who has recently quit service of Government; or

(ii) the acceptance of simple and inexpensive entertainments arranged by public bodies or institutions.

(2) No member of the Service shall exercise pressure of any sort on any Government servant to induce him to subscribe towards any farewell entertainment even if it is of a substantially private and informal character.

S.14 Private trade or employment.--

¹[(1) Subject to the provisions of sub-rule (2), no member of the Service shall except, with the previous sanction of the Government,--

(a) engage directly or indirectly in any trade or business, or

(b) negotiated for or undertake, any other employment, or

(c) hold an elective office, or canvass for a candidate or candidates for an elective office, in any body, whether incorporated or not, or

(d) canvass in support of any business of insurance agency, commission agency etc. owned or managed by any member of his family, or

(e) take part, except in the discharge of his official duties, in the registration, promotion or management of any bank or other company registered or required to be registered under the Companies Act, 1956 (1 of 1956), or any other law for the time being in force, or of any co-operative society for commercial purposes.]

²[(f) Participate in, or associate himself in any manner, in the making of:--
<

S.15 Use of Government accommodation.--

No member of the service shall sub -let, lease or otherwise allow occupation by any other person, of Government accommodation which has been allotted to him.]

S.16 Investment, lending and borrowing.--

¹[(1) No member of the Service shall speculate in any stock, share or other investments but this provision will not apply to occasional investment made through Stock-brokers or other persons duly authorised on licence under the relevant law.

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.

(2) No member of the service 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. For this purpose, any purchase of shares from out of the quotas reserved for Directors or their friends and associates, shall be deemed to be an investment which is likely to embarrass the Government Servant.

(3) If any question arises whether any transaction is of the nature referred to in sub-rule (1) or sub-rule (2), it shall b

S.17 Insolvency and habitual indebtedness.--

(1) A member of the Service shall so manage his private affairs as to avoid habitual indebtedness or insolvency.

(2) A member of the Service against whom any legal proceedings is instituted for recovery of any debt due from or for adjudging him as an insolvent, shall forthwith report the full acts of such legal proceedings to the Government.

(3) The burden of proving that indebtedness or insolvency is the result of circumstances which, with the exercise of ordinary diligence, the member of the Service could not have foreseen or over which he had no control, and has not proceeded from extravagant or dissipated habits, shall be upon him.

S.18 Movable, immovable and valuable property.--

(1) Every person shall, where such person is a member of the Service at the commencement of these rules, before such date after such commencement as may be specified by the Government in this behalf, or where such person becomes a member of the Service after such commencement, on his first appointment to the Service, submit a return of his assets and liabilities in such form as may be prescribed by the Government giving the full particulars regarding:--

(a) the immovable property owned by him, or inherited or acquired by him or 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, postal Cumulative Time Deposits 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; and

(d) debts and other liabilities incurred by him directl

S.19 Transaction in immovable property outside India.--

Notwithstanding anything contained in sub-rule (3) of Rule 16, no member of the Services shall except with the previous sanction of the Government,--

(a) acquire by lease, mortgage, purchase, gift or otherwise, either in his own name or in the name of any member of his family, any immovable property situated outside India; or

(b) dispose of by mortgage, sale, gift or otherwise, or grant any lease in respect of, any immovable property situated outside India which was acquired or is held by him either in his own name or in the name of any member of his family; or

(c) enter into any transaction with any foreigner, foreign Government, foreign organisation or concern,--

(i) for the acquisition, by lease, mortgage, purchase, gift or otherwise, either in his own name or in the name of any member of his family, or any immovable property.

(ii) for the disposal of, by mortgage, sale, gift or otherwise, or the grant of any lease in respect of any, immovable p

S.20 Vindication of acts and character of members of the Service.--

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

¹[Provided that if no such sanction is conveyed to by the Government within 12 weeks from the date of receipt of the request, the member of the service shall be free to assume that the sanction sought for has been granted to him.]

Explanation.-- Nothing in this rule shall be deemed to prohibit a member of the Service from vindicating his private character or any act done by him in his private capacity. Provided that he shall submit a report to the Government regarding such action.

S.21 Observance of cultural norms.--

Every member of the service in his personal capacity or otherwise shall--

(i) observe strictly, the existing policies regarding age of marriage, preservation of the Environment, Wild Life and Cultural heritage:

(ii) observe the existing policies regarding crime against women and

(iii) observe the two children family norms.]

S.22 Canvassing.--

No member of the Service shall bring or attempt to bring any political or other influence to bear upon any superior authority to further interests in respect of matters pertaining to his service under the Government.

S.23 Restriction regarding marriage.--

(1) No member of the Service shall enter into, or contract a marriage with a person having a spouse living; and

(2) no member of the Service having a spouse living, shall enter into, or contract, a marriage with any person:

Provided that the Government may permit a member of the Service 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 member of the Service and the other party to the marriage and

(b) there are other grounds for so doing.

(3) A member of the Service who has married or marries a person other than of Indian Nationality shall forthwith intimate the fact to the Government.]

S.24 Consumption of intoxicating drinks and drugs.--

A member of the Service shall--

(a) strictly abide by any law relating in intoxicating drinks or drugs in force in any area in which he may happen to be for the time being;

¹[(b) not be under the influence of any intoxicating drink or drug during the course of his duty and shall also take due care that the performance of his duties at any time is not affected in any way by the influence of such drink or drug;]

²[(bb) not consume any intoxicating drink or drug in a public place;]

(c) not appear in a public place in a state of intoxication;

(d) not use such drinks or drugs to excess.

³[Explanation.-- For the purpose of this rule, 'public place' means any place or premises (including a conveyance) to which the public have or are permitted to have, access whether on payment or otherwise.]

S.25 Interpretation.--

If any doubt arises as to the interpretation of these rules, the Central Government shall decide the same.

S.26 Delegation of powers.--

The Government may, by general or special order, direct that any power exercisable by it under these rules (except the power under rule 21 or the power under this rule) shall, subject to such conditions, if any, as may be specified in the order, be exercisable also by such officer or authority as may be specified in the order.

S.27 Ceaser and saving.--

The All India Services (Conduct) Rules, 1954 (hereinafter referred to as the said rules), shall cease to be in force:

Provided that the ceaser shall not affect--

(a) the previous operation of, or anything duly done or suffered under, the said rule; or

(b) any right, privilege, obligation, liability acquired, accrued or incurred under the said rules; or

(c) any penalty or punishment incurred under the said rules; or

(d) any investigation, legal proceeding or remedy in respect of any such right, privilege, obligation, liability penalty or punishment as aforesaid; and any such investigation, legal proceeding or remedy may be instituted, continued or enforced and any such penalty or punishment may be imposed as if the said rules had not ceased to be in force.

[No. 8/91/62-AIS(III), dt.18/12/1968. (GSR No. 3, dt. 04/01/69)].

S.28

S.29

S.30