Section 7(4) in Tamil Nadu Panchayats (Employees Conduct) Rules, 2001
(4)No panchayat employee, shall save in the ordinary course of business with a bank, a firm or a public limited company of standing, duly authorized to conduct banking business either himself or through any member of his family or any other person acting on his behalf -(i)lend or borrow money, as principal or from any person within the local limit of his authority or with whom he is likely to have official dealings, or otherwise place himself, under any pecuniary obligation to such person; or(ii)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 employee may, give to or accept from, a relative or 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 employee with the previous sanction of the concerned panchayat;(iii)No panchayat employee shall, either himself or, through any member of his family any other person acting on his behalf, expect with in the previous faction of the panchayat, lend or borrow money to or from any private individual any amount exceeding Rs. 10,000 (Rupees ten thousand only).(iv)When a panchayat employee 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 Executive Authority, Commissioner or Secretary, as the case any may be, and shall, thereafter, act in accordance with such order, as may be made by the panchayat.
