Section 17 in Bihar Government Servant's Conduct Rules, 1976
17. Investments, lending and borrowing.
(1)No Government servant shall speculate in any stock, share or other investments.Explanation.-Frequent purchase or sale or both of shares, securities or other investments shall be deemed to be speculation within the meaning of this sub-rule.(2)No Government servant shall make, or permit any member of his family or any person acting on his behalf to make any investment which is likely to embarrass or influence him in the discharge of his official duties and where a Government servant fails to prevent a member of his family from making an investment of this nature, he shall make a report to that effect to the Government forthwith.(3)If any question arises whether any transaction is of the nature referred to in sub-rule (1) or sub-rule (2), the decision of the Government thereon shall be final.(4)No Government servant shall except with the previous sanction of the Government lend money to any person possessing land or valuable property within the local limits of his authority or at interest to any person:Provided that a Government servant may make an advance of pay to private servant, or give a loan of small amount free of interest to a personal friend or relative, even if such person possesses land within the local limits of his authority.(5)(i)No Government servant shall, save in the ordinary course of business with a bank or a public limited company, himself or through any member of his family or any person acting on his behalf:-(a)Lend or borrow or deposit money as a principal or agent, to or with any person or firm or private limited company within the local limits of his authority or with whom he is likely to have official dealings or otherwise place himself under pecuniary obligation to such person or firm or private limited company; orNote.-A 'pecuniary obligation' means not only obligation arising out of a cash transaction but also the acceptance without consideration of any service or facility other than trifling value:(b)Lend money to any person at interest or in manner whereby return in money or kind is paid :Provided that a Government servant may, give to, accept from, a relative or a personal friend, a purely temporary loan of a small amount free of interest, operate a credit account with a bonafide 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 Government servant with the previous sanction of the Government.(ii)No Government servant shall permit any member of his family except with the previous sanction of the Government to enter into any transaction of the nature referred to in the foregoing sub-rule, and where a Government servant is unable to prevent a member of his family from entering into any such transaction, he shall make a report to that effect to the Government.(6)When a Government servant is appointed or transferred to a post of such a nature as to involve him in the breach of any of the provisions of sub-rule (4) or sub-rule (5) he shall forthwith report the circumstances to the prescribed authority and shall thereafter act in accordance with such order as may be passed by such authority.
