Section 7 in Tamil Nadu Panchayats (Employees Conduct) Rules, 2001
7. Investment, lending and borrowing.
(1)No panchayat employee shall, speculate in any stock, share or other investment.Explanation. - The habitual 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 panchayat employee 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.(3)If any question arises as to whether any transactions is of the nature referred to in sub-rule (1) or sub-rule (2), the decision of the concerned panchayat therein shall be final.(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.(5)Panchayat employee may become members of, and make deposits in, non-agricultural co-operative societies including the Tamil Nadu State Co-operative Banks and Urban Co-operative Banks.(6)Panchayat employee may place deposits, in, and purchase debentures and bonds of, institutions and Companies who float such bonds and debentures for public offer.
