Section 16(4) in M.P. Panchayat Services (Conduct) Rules, 1998
(4)No Panchayat Servant shall save in the ordinary course of business with a bank or a firm of standing duly authorised to conduct banking business, either himself or through any member of his family or any other person acting on his behalf,-(a)lend or borrow money, as principal or agent to or from any person within the local limits of the authority with whom he is likely to have official dealings, or otherwise place himself under any pecuniary obligation to such person; or(b)lend money to any person at interest or in a manner whereby return in money or in kind is charged or paid :Provided that a Panchayat Servant may, give to, or accept from, a relation or a personal friend, a purely temporary loan of a small amount free of interest or operate a credit account with a bona fide tradesman or make an advance of pay to his private employee :Provided further that nothing in this sub-rule shall apply in respect of any transaction entered into by a Panchayat Servant with previous sanction of the Chief Executive Officer.(c)When a Panchayat Servant is appointed or transferred to a post of such nature as would involve him in the breach of any of the provisions of sub-rule (2) or sub-rule (4) he shall forthwith report the circumstances to the Chief Executive Officer and shall thereafter act in accordance with such orders as may be made by the Chief Executive Officer and shall thereafter act in accordance with such orders as may be made by the Chief Executive Officer.
