Refurbishing of Personnel Administation – Scaling New Heights
as well as the requirements of qualifications, seniority and work
experience. The Authority would conduct interviews to short-list
suitable officers for these posts. Government would make the final
selection on the basis of this shortlist.
e.
f.
g.
212
A Central Civil Services Authority should be constituted under the
proposed Civil Services Bill. The Central Civil Services Authority shall
be a five-member body consisting of the Chairperson and four members
(including the member-secretary). The Authority should have a full time
Member-Secretary of the rank of Secretary to Government of India. The
Chairperson and members of the Authority should be persons of eminence
in public life and professionals with acknowledged contributions to
society. The Chairperson and members of the Authority shall be appointed
by the President on the recommendations of a Committee consisting of
the Prime Minister and the Leader of the Opposition in the Lok Sabha.
(Explanation:- Where the Leader of the Opposition in the Lok Sabha
has not been recognized as such, the Leader of the single largest group in
the Opposition in the Lok Sabha shall be deemed to be the Leader of the
Opposition).
The Central Civil Services Authority should deal with matters of assignment
of domains to officers, preparing panels for posting of officers at the level
of Joint Secretary and above, fixing tenures for senior posts, deciding on
posts which could be advertised for lateral entry and such other matters
that may be referred to it by the Government.
A similar procedure should be adopted for filling up vacancies at SAG
level and higher in the central police agencies. For example, in the Central
Para-Military Forces the senior positions should be opened to competition
from officers of the CPMFs, IPS and the Armed Forces (including those
completing their Short Service Commissions). Similarly for the intelligence
agencies officers from the armed forces as well as the CPOs with experience
in the field of intelligence should be considered for postings at higher levels
in the intelligence agencies.
DEPUTATION OF CIVIL SERVANTS TO
ORGANIZATIONS OUTSIDE GOVERNMENT
10
10.1 In many countries, there is a well established practice of civil servants being permitted
to work in the private sector as well as in academic and other non-government institutions
while retaining a lien in government. In France, civil servants are even allowed to contest in
elections without having to resign. Similarly, in the United States where senior positions in
the government are not restricted to career-based bureaucrats, there is frequent movement of
personnel at the higher echelons between government and the corporate sector, the rationale
being that open movement of personnel between the government and the non-government
sectors is mutually beneficial because it promotes exchange of the best human resources
best practices, new ideas and innovations in both sectors. Besides, it helps civil servants to
acquire a wider perspective. However, in some countries the civil services are more ‘closed’
with career-based civil servants occupying the vast majority of government positions. This
is a conscious decision in countries where the government’s role in both the economy and
society is pre-eminent and free movement of personnel between the government and the
private sector is perceived as likely to create major conflicts of interest. In this context, the
civil services in India by and large fall in the less ‘open’ category.
10.2 The policy of facilitating unfettered movement of employees between government
and the corporate sector has both advantages and disadvantages. Following the economic
reforms in the 1990s and the subsequent globalization, there have been many opportunities
for, and successes of, public-private partnerships. While the two sectors have worked
together with increasing success, they bring in different sets of capabilities, and continue
to be associated with different values, work culture and the best practices. For example,
commitment to public service, promotion of equity, equality and social justice, maintenance
of public order and security, and dealing with problems right from the grass roots level
have been specifically identified with the public sector. Private sector, on its part, brings in
modern management practices, innovations, flexibility and absence of red-tapism. In this
context there is perhaps a case to permit government servants to go on deputation to the
private sector and vice versa as such movement could encourage exchange of new ideas,
widen professional horizons, and promote better understanding and mutual appreciation
between the two sectors.
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Refurbishing of Personnel Administation – Scaling New Heights
Deputation of Civil Servants to Organizations Outside Government
10.3 It must, however, be kept in mind that despite globalization and liberalization of the
Indian economy, the State has continued to play a crucial role in almost all spheres vis-a-vis
the private sector, and even where the private sector is a major player, there exists a strong
element of governmental regulation. In the past also, civil servants who resigned and took up
jobs in the corporate sector, had usually been associated with those sectors in their previous
assignments, and often their joining the private sector was perceived as a quid pro quo.
With avenues of employment in the corporate sector being available to a small number of
civil servants holding assignments in certain ‘sought after’ sectors, a vast majority of civil
servants, especially those working in the social sector and sectors like rural development,
will perhaps not be affected by such a policy. This could result in an increasing reluctance
by government servants to work in these crucial social sectors.
10.5 So far as deputation to bodies outside government is concerned, the relevant provision
is as under:
10.4 The civil services in India are governed by a set of rules issued under the Constitution
and statutes which govern their terms and conditions of appointment including deputation
to different positions in the Union and State Governments as well as to bodies outside
government. All India Services and Central Service officers are deputed to serve in the Union
Government with the consent of the concerned State Governments / cadre controlling
authorities under the Central Staffing Scheme. In addition, they can be deputed to serve in
autonomous institutions wholly or substantially funded by the Union Government, Central
Public Sector Undertakings, constitutional and statutory bodies, as well as non-permanent
non-statutory bodies which are categorized as non-central staffing posts. All India Services
officers as well as Central Services Officers may also be deputed for service in a Company
wholly or substantially owned by a State Government, a municipal corporation or a local
body, by the concerned State Government. The relevant Rules {IAS (Cadre) Rules, 1954}
in case of the IAS are as follows:
Rule 6(1)
“A cadre officer may, with the concurrence of the State Governments concerned and the
Central Government, be deputed for service under the Central Government or another
State Government or under a company, association or body or individuals, whether
incorporated or not, which is wholly or substantially owned or controlled by the Central
Government or by another State Government.”
Rule 6(2)(i)
“A Cadre officer may also be deputed for service under a company, association or body
of individuals, whether incorporated or not, which is wholly or substantially owned or
controlled by a State Government, a Municipal Corporation or a Local Body, by the State
Government on whose cadre she/he is borne.”
214
Rule 6(2)(ii)
“A cadre officer may also be deputed for service under an international organization, an
autonomous body not controlled by the Government, or a private body, by the Central
Government in consultation with the State Government on whose cadre she/he is
borne.”
10.6 Government has issued guidelines from time to time to regulate the movement
of personnel under this provision. The guidelines issued on 26th December, 2006 had
erroneously placed deputation to constitutional and statutory bodies under this provision.
These guidelines also define private bodies as follows:
a.
Non-profit organizations of repute working in the fields of research, social work
social development infrastructure etc.
b.
Organisations registered under the Societies Registration Act.
c.
Organisations registered under the Charitable Trusts Act.
d.
Apex bodies of Industries and Commerce under the various statutes.
e.
Organisations registered under the Cooperatives Act.
10.7 The guidelines further stated that deputation to private bodies under the abovementioned Rule would not be allowed to organizations of a political, religious or sectarian
nature or which have any pending FIR or chargesheet, or conviction for violation of any
law. Those guidelines stated that the inclusion of organizations under the registration of
Companies Act would be examined separately. It also set up a screening committee under
the Cabinet Secretary for clearing applications seeking deputation under Rule 6(2)(ii).
10.8 As these guidelines did not specifically prohibit deputation to Companies in the private
sector, several cases of deputation to private sector companies and financial institutions
were permitted by government. Thereafter, presumably under the apprehension that
such deputations could lead to conflict of interest situations, the guidelines were revised
on 28th November, 2007. In the latest guidelines, it has been clarified that deputation
to constitutional and statutory bodies would be governed by Rule 6(1) and these would
be described as non-central staffing posts. Private bodies, to which deputation has been
permitted are re-categorised as follows:
215
Refurbishing of Personnel Administation – Scaling New Heights
Deputation of Civil Servants to Organizations Outside Government
10.3 It must, however, be kept in mind that despite globalization and liberalization of the
Indian economy, the State has continued to play a crucial role in almost all spheres vis-a-vis
the private sector, and even where the private sector is a major player, there exists a strong
element of governmental regulation. In the past also, civil servants who resigned and took up
jobs in the corporate sector, had usually been associated with those sectors in their previous
assignments, and often their joining the private sector was perceived as a quid pro quo.
With avenues of employment in the corporate sector being available to a small number of
civil servants holding assignments in certain ‘sought after’ sectors, a vast majority of civil
servants, especially those working in the social sector and sectors like rural development,
will perhaps not be affected by such a policy. This could result in an increasing reluctance
by government servants to work in these crucial social sectors.
10.5 So far as deputation to bodies outside government is concerned, the relevant provision
is as under:
10.4 The civil services in India are governed by a set of rules issued under the Constitution
and statutes which govern their terms and conditions of appointment including deputation
to different positions in the Union and State Governments as well as to bodies outside
government. All India Services and Central Service officers are deputed to serve in the Union
Government with the consent of the concerned State Governments / cadre controlling
authorities under the Central Staffing Scheme. In addition, they can be deputed to serve in
autonomous institutions wholly or substantially funded by the Union Government, Central
Public Sector Undertakings, constitutional and statutory bodies, as well as non-permanent
non-statutory bodies which are categorized as non-central staffing posts. All India Services
officers as well as Central Services Officers may also be deputed for service in a Company
wholly or substantially owned by a State Government, a municipal corporation or a local
body, by the concerned State Government. The relevant Rules {IAS (Cadre) Rules, 1954}
in case of the IAS are as follows:
Rule 6(1)
“A cadre officer may, with the concurrence of the State Governments concerned and the
Central Government, be deputed for service under the Central Government or another
State Government or under a company, association or body or individuals, whether
incorporated or not, which is wholly or substantially owned or controlled by the Central
Government or by another State Government.”
Rule 6(2)(i)
“A Cadre officer may also be deputed for service under a company, association or body
of individuals, whether incorporated or not, which is wholly or substantially owned or
controlled by a State Government, a Municipal Corporation or a Local Body, by the State
Government on whose cadre she/he is borne.”
214
Rule 6(2)(ii)
“A cadre officer may also be deputed for service under an international organization, an
autonomous body not controlled by the Government, or a private body, by the Central
Government in consultation with the State Government on whose cadre she/he is
borne.”
10.6 Government has issued guidelines from time to time to regulate the movement
of personnel under this provision. The guidelines issued on 26th December, 2006 had
erroneously placed deputation to constitutional and statutory bodies under this provision.
These guidelines also define private bodies as follows:
a.
Non-profit organizations of repute working in the fields of research, social work
social development infrastructure etc.
b.
Organisations registered under the Societies Registration Act.
c.
Organisations registered under the Charitable Trusts Act.
d.
Apex bodies of Industries and Commerce under the various statutes.
e.
Organisations registered under the Cooperatives Act.
10.7 The guidelines further stated that deputation to private bodies under the abovementioned Rule would not be allowed to organizations of a political, religious or sectarian
nature or which have any pending FIR or chargesheet, or conviction for violation of any
law. Those guidelines stated that the inclusion of organizations under the registration of
Companies Act would be examined separately. It also set up a screening committee under
the Cabinet Secretary for clearing applications seeking deputation under Rule 6(2)(ii).
10.8 As these guidelines did not specifically prohibit deputation to Companies in the private
sector, several cases of deputation to private sector companies and financial institutions
were permitted by government. Thereafter, presumably under the apprehension that
such deputations could lead to conflict of interest situations, the guidelines were revised
on 28th November, 2007. In the latest guidelines, it has been clarified that deputation
to constitutional and statutory bodies would be governed by Rule 6(1) and these would
be described as non-central staffing posts. Private bodies, to which deputation has been
permitted are re-categorised as follows:
215
Refurbishing of Personnel Administation – Scaling New Heights
i)
Registered Societies or Trusts or Foundations or non-profit organizations or
NGOs or cooperatives; and
ii)
Apex bodies of Industries and Commerce
Provided that such autonomous or private bodies fulfil all four of the following
criteria:
a)
they are functionally autonomous of the Central and State
Governments;
b)
they are not substantially funded by the Central and State
Governments;
c)
the Central or State Governments do not have powers to give them
directions; and
d)
Deputation of Civil Servants to Organizations Outside Government
the organizations that will determine its status as a commercial enterprise and not its
organizational structure. Therefore, it may be more useful to make a distinction between the
organizations to which deputation may be allowed on the basis of their activities. For the
present, Government should permit deputation of civil servants to only such organizations
that are engaged mainly in non-profit making activities.
10.12 Recommendations
a.
In drawing up the list of external organizations to which government
servants can be permitted to go on deputation, the primary consideration
should be the objectives and activities of such organizations and not merely
its organizational structure. For the present Government should permit
deputation of civil servants only to such organizations that are engaged
in non-profit making activities.
b.
This policy may be reviewed after three years.
they are not companies registered under the Companies Act.
10.9 Thus the revised guidelines (2007) have prohibited deputation to Companies
registered under the Companies Act of 1956. The underlying principle seems to be that
government servants should not be allowed to go on deputation to private commercial
organizations.
10.10 The Commission has separately recommended that at higher levels of government,
lateral entry from the private sector should be introduced. Facilitating a free flow of civil
servants to the private sector for brief periods, however, is a more complex issue, and the
policy could indeed result in a serious conflict of interest. Taking the above into account,
the Commission is of the view that the dangers of possible conflict of interests outweigh
any possible benefits that movement of civil servants to the private sector and back may
provide and therefore is not in favour of lateral movement of government employees to
the private commercial organizations and back. The situation could, however, be reviewed
after 3 years.
10.11 On closer scrutiny of these guidelines, some issues regarding the movement of
government servants to certain types of bodies outside government remains unclear. The
guidelines allow movement to specified private bodies that are not registered as companies.
This does not recognize the fact that there are societies and trusts as well as cooperatives
that undertake activities which are commercial in nature. Also there are companies which
are not profit oriented. The Commission feels that it is the objectives and activities of
216
217
Refurbishing of Personnel Administation – Scaling New Heights
i)
Registered Societies or Trusts or Foundations or non-profit organizations or
NGOs or cooperatives; and
ii)
Apex bodies of Industries and Commerce
Provided that such autonomous or private bodies fulfil all four of the following
criteria:
a)
they are functionally autonomous of the Central and State
Governments;
b)
they are not substantially funded by the Central and State
Governments;
c)
the Central or State Governments do not have powers to give them
directions; and
d)
Deputation of Civil Servants to Organizations Outside Government
the organizations that will determine its status as a commercial enterprise and not its
organizational structure. Therefore, it may be more useful to make a distinction between the
organizations to which deputation may be allowed on the basis of their activities. For the
present, Government should permit deputation of civil servants to only such organizations
that are engaged mainly in non-profit making activities.
10.12 Recommendations
a.
In drawing up the list of external organizations to which government
servants can be permitted to go on deputation, the primary consideration
should be the objectives and activities of such organizations and not merely
its organizational structure. For the present Government should permit
deputation of civil servants only to such organizations that are engaged
in non-profit making activities.
b.
This policy may be reviewed after three years.
they are not companies registered under the Companies Act.
10.9 Thus the revised guidelines (2007) have prohibited deputation to Companies
registered under the Companies Act of 1956. The underlying principle seems to be that
government servants should not be allowed to go on deputation to private commercial
organizations.
10.10 The Commission has separately recommended that at higher levels of government,
lateral entry from the private sector should be introduced. Facilitating a free flow of civil
servants to the private sector for brief periods, however, is a more complex issue, and the
policy could indeed result in a serious conflict of interest. Taking the above into account,
the Commission is of the view that the dangers of possible conflict of interests outweigh
any possible benefits that movement of civil servants to the private sector and back may
provide and therefore is not in favour of lateral movement of government employees to
the private commercial organizations and back. The situation could, however, be reviewed
after 3 years.
10.11 On closer scrutiny of these guidelines, some issues regarding the movement of
government servants to certain types of bodies outside government remains unclear. The
guidelines allow movement to specified private bodies that are not registered as companies.
This does not recognize the fact that there are societies and trusts as well as cooperatives
that undertake activities which are commercial in nature. Also there are companies which
are not profit oriented. The Commission feels that it is the objectives and activities of
216
217