Section 26(1) in All India Services (Death-Cum-Retirement Benefits) Rules, 1958
(1)A pensioner shall not accept any commercial employment before the expiry of [one year] from the date of his retirement, except with the previous sanction of the Central Government by submitting an application in Schedule 'L'. If a pensioner accepts a commercial employment without such sanction, it shall be competent for the Central Government to declare by an order in writing that he shall not be entitled to the whole or such part of the pension and for such period as may be specified in the order:Provided that the previous sanction may be granted by the State Government concerned on whose cadre the member of the service is borne and who is not holding a post higher than a post in the pay scale of Rs.22400-24500/- and has not worked under the Central Government during the preceding [three years] [Substituted vide Notification No. 26013/3/2006-AIS(II), dated 12/1/2007.] prior to his retirement form the service.]Provided further that no such order shall be made without giving the pensioner concerned an opportunity of showing cause against such declaration:[Provided also that it shall be competent for the Central Government or the State Government, as the case may be, to allow the pensioner to continue in any commercial employment in an organisation with whom the services of the Members of the All India Services had been placed immediately before his/her retirement under the provisions of the respective Cadre Rules of All India Services pending formal sanction of such commercial employment subject to the condition that the Member of the Service shall withdraw from such organisation forthwith once a decision is taken by the Competent Authority not to accord such sanction.] [Inserted vide Notification No. 23013/11/2005-AIS(II), dated 8/3/2007.][Provided also that a pensioner who has been permitted by the Central Government to take up a particular commercial employment during leave preparatory to retirement shall not be required to obtain subsequent permission for his continuance in such employment after retirement.] [Substituted vide Notification No. 29018/11/2003-AIS(I) dated 20/12/2004][Explanations: (1) 'Commercial Employment' means: -(a)an employment, whether paid or honorary, in any capacity including that of an agent under a company, firm, co-operative society, body or individual engaged in trading, commercial, industrial, financial or professional business, and includes a directorship of such company or partnership of such firm but does not include employment under a body corporate, wholly or substantially owned or controlled by Government;(ii)setting up practice, either independently or as a partner of a firm, as adviser or consultant in matters in respect of which a pensioner has-(a)no professional qualifications and the matters in respect of which the practice is proposed to be set up or carried on are relatable to his official knowledge or experience; or(b)professional qualifications, but the matters in respect of which such practice is to be set up are such as are likely to give his clients an unfair advantage by reason of his previous official position; or(c)to undertake work involving liaison or contact with the offices or officers of the Government.]Note: 1. For the purpose of this Explanation, 'employment under a co-operative society' includes the holding of any office, whether elective or otherwise, such as that of President, Chairman, Manager, Secretary, Treasurer and the like, by whatever name called in such society.
