APPENDIX I
No. 16013/1/79 - Allowances
Government of India/ Bharat Sarkar
Minisitry of Home Affairs/ Grih Mantralalya
Department of Personnel and Administrative Reform
(Karmik aur Prashasnik Sudhar Vibhag)
New, Delhi, the 11th Feb., 1980

OFFICE MEMORANDUM
Subject  : Consolidated instructions relating to acceptance of fees by Central Government Employee (other than acceptance of fees by medical officers in civil employ).

The undersigned is directed to say that certain anomalies in the exiting rules and orders regulating the acceptance of fees by central government employees (other than acceptance of fees by medical officers in civil employ for services other than professional reviewed carefully and it has been decided to issue the following consolidated instructions in replacement of the OMB listed in margin.
Ministry of Finance
  1. Letter No. F.16(2)-E.IV/53 dated 11th June, 1953
  2. Letter No. 4810-E Iv/54 Dated 4th October, 1954
  3. Letter No. 9(22)-E.II(13)/56 Dated 4th October, 1954
  4. Memo No. 15(45)-E.I/59 Dated 6th Nov., 1959
  5. Memo No. 15/(8)-E.II(B)/60 Dated 4th May, 1960
  6. Memo No. 11(1)-E.II(B)/63 Dated 1st April, 1963
  7. Memo No. 11(2)-E.II(B)/63 Dated 6th May , 1963
  8. Memo No. 12(4)-E.II(B)/64 Dated 22nd October , 1964
  9. Memo No. 12(7)-E.II(B)/68 Dated 16th April , 1968
  10. Memo No. 11(14)-E.II(B)/63 Dated 23rd December , 1968
  11. Memo No. 11(1)-E.II(B)/69 Dated 25th June , 1970
  12. Memo No. 7(7)-E.II(B)/70 Dated 14th October , 1970
  13. Memo No. 11(1)-E.II(B)/69 Dated 31st August, 1974
  14. Memo No. 16011/2/E.II(B)/75 Dated 28th August, 1975
  15. Memo No. 16012/3/78-E.II(B) Dated 16th Sept., 1978
2. In accordance with F.R. 48, except as otherwise provided by general or special orders, a government servant is eligible to receive and retain without special permission :
  1. the premium awarded for any essay or plan in public competitions;
  2. any reward offered for the arrest of a criminal or for information or special services in connection with the administration of justice;
  3. any reward payable in accordance with the provisions of nay Act, Regulation or Rule framed there under;
  4. Any reward sanctioned for services in connection with the administration of the Customs & Excise laws;
  5. Any fee payable to a Government servant for duties which he is required to perform in his official capacity under any special or loyal law or by order of Government.
  1. According to definition of fees contained in FR 9(6-A), fees do not include the following payments and therefore, no special sanction is necessary for acceptance of these payments.
    1. unearned income such as income from property, dividends and interest on securities; and
    2. income from literary, cultural, artistic, scientific or technological efforts.
    Further, fees do not include honorarium which is a recurring or non-recurring payment grated to a Govt. servant from the Consolidated Fund of India or the Consolidated Fund for a State or the Consolidated Fund of a Union Territory as remuneration for special work of an occasional or intermittent character. Thus, a Govt. servant may be in receipt of honorarium or occasional or intermittent character. Thus, a Govt. servant may be in receipt of honorarium or fee or payments of nature indicated in paragraphs (a) and (b) above which are neither fees nor honorarium. The instructions contained in this O.M. mainly seek to regulate the acceptance of "Fees" by Govt. servants. It is clarified that income from occasional participation in sports, game and athletic activities as players, referees, umpires or manger of teams would be covered by (b) above. However, in case a Govt. servant is permitted to participate in such sports activies and accept payment as professionals the income derived there from would continue to be subject to deduction prescribed in Sr-12. Acceptance of fees mentioned below would not be converted by (b) above:-
  2. Before acceptance of any payment other than those exempted under paragraphs 2 and 3 above, a Govt. servant should obtain prior sanction of the competent authority under S.R. 11. Request for permission for acceptance of fees, wherever necessary, should be made along with the request for permission for undertaking the outside work or activity, where the latter permission is also necessary in terms of SR 11. The authorities which can exercise the power of the competent authority for this purpose have been indicated in serial no 3 of Appendix 'A' under Supplementary Rule 2(6) which is extracted and excludes to those OM. as annexure. Before granting the sanction, the competent authority should satisfy itself that the work or services could be performed by the Govt. servant during his spare time without detriment to his official duties and responsibilities.
  3.  
    1. In respect of occasional and casual work performed outside the office hours, unless otherwise provided a Government servant may retain the full fee received by him upto a limit of Rs. 500/-. If the fee exceeds these limits, one-third of the fee received, subject to the condition that the fee retained by him does not fall short of Rs. 500/- should be credited to the Government, Non-recurring and recurring fee should be dealt with seperately and should not be added for the purpose of crediting one-third to the general revenues. In the case of the former, the limit of Rs. 500/- prescribed should be applied in each individual case, and in the case of the latter, the limit should be applied with reference to the total recurring fee received in the financial year.
    2. For taking up part-time or full time employment while on study leave abroad would require the permission of the authority which sanctioned the study leave. However crediting 1/3rd of the remuneration to government revenues would not be necessary in such cases.
  4. The following payments received by Government servants will not be subject to crediting one-third of the amount to the general revenues:
  5. Where a Government servant accepts a fee other than those listed above, with or without specific permission of the competent authority, it will be subject to the restriction indicated in paragraph 5 above. By way of illustration, this restriction will apply in the following cases:-
  6. Scientists, technologists and medical specialists working under the Central Government, who, in the over all interest of research and development, are permitted by Government to take full time assignment either in foreign countries or within the country, as visiting professors, students etc, in universities or scientific/medical institutions, may be allowed to retain in to the remuneration received by them subject to the following conditions;-
  7. Private consultancy work should not be accepted by the staff working in any Government institution including Indian Institute of Technology etc. However, the Institutions concerned can take up consultancy work from private parties and entrust the work to selected staff members. The fees received for rendering consultancy work should credited to the funds of institution and suitable honorarium may be sanctioned to the members of the staff entrusted with this work. The honorarium paid to all the members of the team taken together should not exceed 2/3rd of the fees received by the institution. Appropriate provision should be incorporated in the terms of contract where an officer is in employment on contract basis.
  8. All Government servants who accept any outside work in return for fees should ensure that their official work does not thereby suffer. They shall not undertake or shall discontinue such work if so directed by the Government.
  9. A Government servant on foreign assignment who earns his fees in foreign exchange and pays one-third of his fees to the general revenues in rupees, would be required to show proof of having surrendered equal amount of foreign exchange at any bank authorized to convert foreign exchange into rupees. The competent authority sanctioning the acceptance of fees should make a stipulation to this effect in the sanction itself.
  10. In so far as the personnel of the Indian Audit and Accounts Department are concerned, these orders issue after consultation with the Comptroller and Auditor General of India.
  11. Hindi version of this OM will follow.
Sd/-
(R.C. Gupta)
Deputy Secretary to the Government of India.

APPENDIX A
Authorities which exercise the power of the competent authority in relation to acceptance of fee