Rajasthan High Court Rejects Misleading Affidavit Regarding Absorption Of Corporation Employees Into Government Service

The High Court of Judicature for Rajasthan, sitting at Jaipur, has issued a sharp rebuke to the State government regarding the alleged irregular absorption of employees from private utility corporations into government departments. In a recent hearing, a division bench comprising Acting Chief Justice Sanjeev Prakash Sharma and Justice Bhuwan Goyal rejected a state-filed affidavit as "misleading" and ordered the submission of a fresh response within seven days.

The Genesis of the Dispute

The petition, brought forward by the society 'Public Against Corruption', challenges the legality of absorbing staff previously employed by Jaipur Vidyut Vitran Nigam Limited (JVVNL) corporations into the state's Urban Development and Housing (UDH) department. The petitioner alleges that these transfers were executed without following established government procedures, effectively bypassing recruitment standards to grant these individuals status as government servants.

A Questionable Legal Justification

In its defense, the State government relied on Rule 33 of the Rajasthan Civil Services (Pension) Rules, 1996, arguing that this provision authorized the permanent transfer and absorption of employees. However, the High Court found this interpretation to be fundamentally flawed.

The Court observed that Rule 33 is intended solely to govern the pensionary benefits of a government servant who is transferred to a corporation, not to facilitate the intake of private corporate staff into government departments.

Key Observations from the Bench

The division bench expressed severe dissatisfaction with the conduct of the authorities involved. The court noted:

  • “The provision nowhere allows transfer of an employee working with a Company to be transferred to a Department and absorbed therein.”
  • Regarding the reliance on Rule 33, the Court stated: “The Rule nowhere talks about any such permission to transfer from State Public Sector undertakings and Autonomous Bodies to the State Government and only deals with the pension which is required to be provided... Thus we find that a misleading affidavit has been filed by the concerned Officer.”

Judicial Directive

Following an affidavit filed by Principal Secretary Debasish Prusty, which the court deemed inaccurate, the bench has directed the government to provide a clear, comprehensive account of the absorption process. The government is now under strict instructions to explain how and under what legal authority these employees were absorbed without any formal process being initiated at the corporate or state levels.

The court has adjourned the matter until August 11, 2026, by which time the state must submit a revised affidavit that clarifies its position in light of the High Court's observations on the limitations of the existing pension rules. This case remains a significant test of administrative accountability and the legal boundaries governing the integration of corporate employees into the civil service.