CONDUCT, DISCIPLINE

AND APPEAL RULES

FOR

MANAGEMENT EMPLOYEES

HINDUSTAN PETROLEUM CORPORATION LTD.

(AMENDED EFFECTIVE AS OF January 1 , 2014)
 CONTENTS

S.No. ITEM PAGE

NO.
1 SHORT TITLE & COMMENCEMENT 4
2 APPLICATION 4
3 DEFINITION 4-5

PART I - CONDUCT RULES 6

1 SCOPE OF OFFICER'S SERVICE 6

2 LIABILITY TO ABIDE BY RULES AND ORDERS 6
3 OBLIGATION TO MAINTAIN SECRECY 6
4 OFFICERS TO PROMOTE CORPORATION'S INTEREST 6
4-A. TAKING PART IN POLITICS AND ELECTIONS 6
5. TAKING PART IN DEMONSTRATIONS 7
5-A. JOINING OF ASSOCIATIONS BY CORPORATION OFFICERS 7
6. CONNECTION WITH PRESS OR RADIO 7
7. UNAUTHORISED COMMUNICATION OF INFORMATION 7
8. CRITICISM OF GOVERNMENT AND THE CORPORATION 7
MAKING DEROGATORY STATEMENTS AGAINST 8
8-A.
OFFICERS
9. GIFTS 8
10. DOWRY 8
PROHIBITION OF SEXUAL HARASSMENT OF WORKING 8
10-A.
WOMEN
11. PRIVATE TRADE OR EMPLOYMENT 9
12. INSOLVENCY AND HABITUAL INDEBTEDNESS 9
13. MOVEABLE, IMMOVEABLE AND VALUABLE PROPERTY 9-10
13-A. DEALING IN SHARES 10
14. VINDICATION OF ACTS AND CHARACTER OF OFFICERS 11
CANVASSING OF NON-OFFICIAL OR OTHER OUTSIDE 11
15.
INFLUENCES
16. BIGAMOUS MARRIAGE 11
17. OFFICERS MARRYING FOREIGNERS 11
18. EMPLOYMENT OF NEAR RELATIVES OF THE OFFICERS 11
OF THE CORPORATION IN ANY COMPANY OR FIRM
ENJOYING THE PATRONAGE OF THE CORPORATION
19. PATENT FOR INVENTION MADE 11
20. ACCEPTANCE OF REWARDS 12
21. INVESTMENT, LENDING AND BORROWING 12
22. AN OFFICER OF THE CORPORATION SHALL 12
EVIDENCE BEFORE COMMITTEE OR ANY OTHER 12
23.
AUTHORITY
PUBLIC DEMONSTRATION IN HONOUR OF 13
24.
CORPORATION'S OFFICERS
25. POST RETIREMENT APPOINTMENT/ EMPLOYMENT 13
26. APPLICATION FOR EMPLOYMENT 13

PART II- DISCIPLINE AND APPEAL RULES

A. MISCONDUCT 14-15
B. PENALTIES 16
C. SUSPENSION 16-17
D. SUBSISTENCE ALLOWANCE 17
E. TREATMENT OF THE PERIOD OF SUSPENSION 17
F. PROCEDURE FOR IMPOSING MAJOR PENALTIES 18-21
G. PROCEDURE FOR IMPOSING MINOR PENALTIES 21
H. SPECIAL PROCEDURE IN CERTAIN CASES 21
I. SEPARATION PENDING DISCIPLINARY PROCEEDINGS 21
J. PROCEDURE AND CONTENTS OF APPEAL 22
K. PROCEDURE AND CONTENTS OF REVIEW 22
L. PREMATURE RETIREMENT 23-24
M. INTERPRETATIOIN 25
N. AMENDMENTS 25
[2]
 ANNEXURES 26

SCHEDULE I SCHEDULE OF DISCIPLINARY AUTHORITY 27

27
SCHEDULE II DELETED

SCHEDULE III DECLARATION REGARDING TRANSACTIONS 28

OF MOVABLE/ IMMOVABLE PROPERTIES

ATTACHMENT I DETAILS OF AUTHORITY TO PLACE AN OFFICER 29

UNDER SUSPENSION

[3]
 CONDUCT, DISCIPLINE & APPEAL
RULES FOR MANAGEMENT EMPLOYEES

1. SHORT TITLE AND COMMENCEMENT

(a) These rules shall be called Hindustan Petroleum –

Management Employees' Conduct, Discipline and Appeal Rules, 1976.

(b) These rules shall come into force on November 1, 1976.

2. APPLICATION

These rules shall apply to all management employees of the Corporation.

3. DEFINITION

In these rules, unless the context otherwise requires :

+(a) Management Employee: means a person employed by the Corporation in the management cadre
(hereinafter called officer) and includes a person on deputation to the Corporation, subject to the
terms of deputation. The term would also include an Officer Trainee, an officer on probation, any
such person whose services are placed at the disposal of Subsidiaries and Joint Ventures of the
Corporation and any such person whose services are temporarily placed by the Corporation at the
disposal of Central Govt. or a State Govt. or other entity of the Central Govt. or a State Govt. or any
other organization.
.
(b) Corporation: means the Hindustan Petroleum Corporation Limited.

(c) Board : means the Board of Directors of the Corporation and includes, in relation to the
exercise of powers, any Committee of the Board.

(d) Committee of Functional Directors: means a committee of the C & MD and Functional
Directors of the Corporation.

(e) C & MD: means the Chairman and Managing Director of the Corporation or any other officer who
holds charge of the administrative functions of C & MD for the time being.

+(ee) Disciplinary Committee of Functional Directors (hereinafter referred to as DCFD) means the
Committee comprising of all Functional Directors of the Corporation, excluding C&MD.

(f) Functional Director: means the director in charge of a function or any other officer who holds
charge of the administrative functions of a Functional Director.

(g) Executive Director / Chief General Manager / General Manager means the Executive Director /
Chief General Manager / General Manager of the Corporation's Marketing / Refinery Division /
Corporate Office and other locations notified from time to time.

(h) Disciplinary Authority: shall mean an authority competent to institute departmental enquiry
as specified in Rule F(2) of Part II, and also an authority as specified in Schedule I, or any
authority higher than it, competent to impose any of the penalties specified in Rule B of Part II.

(i) Competent Authority: means the authority empowered by the Board of Directors or the Chairman
and Managing Director by any general or special rule or order to discharge the functions or use the
powers specified in the rule or order.

(j) Family members of family in relation to an officer includes:-

(i) the wife or husband, as the case may be, of such officer, whether residing with him or her
or not, but does not include a wife or husband separated from the officer by a decree or
order of a competent court.

+ Amendment effective January 01, 2014

[4]
 (ii) the son or daughter or the step-son or step-daughter of such officer and wholly dependent
on him or her, but does not include a child or step-child who is no longer in any way
dependent on him or her or of whose custody the officer has been deprived by or under any
law; and any other person related, whether by blood or marriage, to such officer or to his or
her wife or husband, as the case may be, and wholly dependent on such officer.

(k) Conduct Rules : means conduct rules framed and amended by the Corporation from time to
time. Conduct rules currently applicable are incorporated in Part I of these rules.

(l) Schedule : means schedules appended to these rules.

+(m) The words importing the masculine gender shall be taken to include the feminine gender.

+ Amendment effective January 01, 2014

[5]
 PART - I

CONDUCT RULES

1. SCOPE OF OFFICER'S SERVICE:

Unless in any case, it is otherwise distinctly provided, the whole time of an officer shall be at the disposal of
the Corporation and he shall serve the Corporation in its business in such capacity and at such place as he
may, from time to time, be directed.

2. LIABILITY TO ABIDE BY RULES AND ORDERS:

Every officer shall conform to and abide by the rule incorporated herein and shall observe, comply with and
obey all orders and directions which may from time to time, be given to him in the course of his official duties
by any person or persons under whose jurisdiction, superintendence or control he may, be placed.

3. OBLIGATION TO MAINTAIN SECRECY:

Every Officer shall maintain the strictest secrecy regarding the Corporation's affairs and shall not communicate
directly or indirectly any information to any person to whom he is not authorised to communicate such
information, except in the performance in good faith of the duties assigned to him.

4. OFFICERS TO PROMOTE CORPORATION'S INTEREST :

Every officer shall serve the Corporation honestly and faithfully. He shall use his utmost endeavor to promote the
interest of the Corporation and shall show courtesy and attention in all transactions. Every officer of the
Corporation shall at all times :-

a) maintain absolute integrity,

b) maintain devotion to duty; and

c) do nothing which is unbecoming of an officer of the Corporation.

Every officer of the Corporation shall take all possible steps to ensure the integrity and devotion to duty of all
employees for the time being under his control and authority.

4-A. TAKING PART IN POLITICS AND ELECTIONS :

1. Subject to any general or special order of the Corporation no officer of the Corporation shall be an
office bearer or be otherwise associated with any political party or any organisation which takes part
in politics or take part in, subscribe in aid of, or assist in any other manner, any political movement or
activity in India or relating to Indian affairs.

2. If any question arises whether any movement or activity falls within the scope of Rule I above, the
decision of the Corporation thereon shall be final.

3. No officer of the Corporation shall canvas or otherwise interfere with, or use his influence in
connection with or take part in, an election to any legislature or local authority :

Provided that :-

(i) a Corporation’s officer qualified to vote at such election may exercise his right to vote, but
where he does so, he shall give no indication of the manner in which he proposes to vote or
has voted.

[6]
 (ii) a Corporation’s officer shall not be deemed to have contravened the provisions of this
sub-rule by reason only that he assists in the conduct of an election in the due performance
of a duty imposed on him by or under any law for the time being in force or by any general
or special order of the Corporation.

Explanation :- The display by a Corporation officer on his person, vehicle or residence of any
electoral symbol shall amount to using his influence in connection with an election within the
meaning of this sub-rule.

+5. TAKING PART IN DEMONSTRATIONS:

No Officer shall:

(a) engage himself or participate in any demonstration which involves incitement/ abetment to an offence.

(b) resort to or in any way abet any form of “strike”* or coercion or physical duress in connection with any matter
pertaining to his service or the service of any other Employee of the Corporation.

*Explanation: In this Rule “Strike” shall have the same meaning as in clause (q) of Section 2 of the Industrial
Disputes Act, 1947 (14 of 1947).

5-A. JOINING OF ASSOCIATIONS BY CORPORATION OFFICERS :

No officer of the Corporation shall join or continue to be member of an association, the objects or activities of
which are prejudicial to the interest of the sovereignty and integrity of India or public order of morality.

6. CONNECTION WITH PRESS OR RADIO :

(a) No officer of the Corporation shall, except with the previous permission of the Chairman and
Managing Director, own wholly or in part or conduct or participate in the editing or
management of any newspaper or other periodical publication.

(b) No officer of the Corporation shall, except with the previous permission of the Chairman and
Managing Director or in the bonafide discharge of his duties, participate in a radio broadcast or
contribute any article or write any letter either in his own name or anonymously, pseudonymously or in
the name of any other person to any newspaper or periodical.

Provided that no such permission is required if such broadcast or such contribution is of a purely
literary, artistic, civic, social or scientific character.

7. UNAUTHORISED COMMUNICATION OF INFORMATION:

No officer shall, except in accordance with general or special order of the Chairman and Managing Director
or in the performance in good faith of the duties assigned to him, communicate directly or indirectly any
official document or any part thereof, or information to any officer, any other employee or any other person
to whom he is not authorised to communicate such document or information.

Such wrongful communication of information as well as the retention or removal of any document containing
such information is punishable, under the official Secrets Act (Act No. XIX of 1923).

8. CRITICISM OF GOVERNMENT AND THE CORPORATION:

No officer shall, in any radio broadcast or in any document under his name or in the name of any other
person or in any communication to the press or in public utterances, make any statement :

(a) Which has the effect of adverse criticism of any policy or action of the Central or State Government or of
the Corporation; or

(b) Which is capable of embarrassing the relations between the Corporation and the public.

Provided that nothing in these rules shall apply to any statement made or views expressed by an officer of
purely factual nature which are not considered to be of a confidential nature in his official capacity or in
due performance of the duties assigned to him.

+ Amendment effective January 01, 2014

[7]
+8 A. No Officer of the Corporation should make statements either in any meeting or to press or T.V., or any
other Media conveying derogatory remarks against the Chairman & Managing Director and other Directors or
any other senior Officers of the Corporation, which will lower the prestige of the organization.

+9. GIFTS:

(a) Save as otherwise provided in these rules, no officer of the Corporation shall accept or permit any
member of his family or any other person acting on his behalf to accept any gift.

Explanation : The expression 'gift' shall include free transport, boarding, lodging or other services or
any other pecuniary advantage when provided by any person other than a near relative or a personal
friend having no official dealings with the officer.

Note : An officer of the Corporation shall avoid acceptance of lavish or frequent hospitality from any
individual or firm having official dealings with him.

(b) On occasions such as wedding, anniversaries, funerals or religious functions, when the making of gifts
is in conformity with the prevailing religious or social practices, an Officer of the Corporation may accept
gifts from his near relatives* ; however, he shall make a report to the competent authority, if the value of
the gift exceeds Rs. 25,000/-.

*Explanation: In this Rule the term near relatives shall have the same meaning given for the term
“Relative” as defined under Section 2(77) of the Companies Act, 2013 [18 of 2013] , as amended from
time to time.

(c) On such occasions, as are specified in sub-rule (b), an Officer of the Corporation may accept gifts from
his personal friends having no official dealings with him but he shall make a report to the Chairman and
Managing Director, if the value of any such gift exceeds Rs.5000/-.

(d) In any other case, an officer of the Corporation shall not accept or permit any member of his family or
any other person acting on his behalf to accept any gift without the sanction of the Competent Authority
if the value thereof exceeds Rs.1,500/-.

Provided that when more than one gift has been received from the same person/ firm within a period of
12 months, the matter shall be reported to the Competent Authority if the aggregate value of the gifts
exceeds Rs. 1,500/-.

10. DOWRY:

No officer of the Corporation shall :

(a) give or take or abet the giving or taking of dowry; or

(b) demand, directly or indirectly, from the parents or guardian of a bride or bridegroom, as the cas e may
be, any dowry.

Explanation : For the purpose of this rule `dowry' has the same meaning as in the Dowry Prohibition Act, 1961
(28 of 1961).

+10A. *PROHIBITION OF SEXUAL HARASSMENT OF WORKING WOMEN

(i) No Officer shall indulge in any act of sexual harassment of any women at her work place.

(ii) Every Officer who is in-charge of a work place, shall take appropriate steps to prevent sexual harassment
to any women at such work place.

Explanation : For the purpose of this rule "sexual harassment" includes such unwelcome sexually determined
behaviour, whether directly or otherwise, as:-

(a) physical contact and advances ;

(b) demand or request for sexual favours ;
(c) sexually coloured remarks ;
(d) showing any pornography ; or
(e) any other unwelcome physical, verbal or non-verbal conduct of a sexual nature.

+ Amendment effective March 08, 1999

[8]
11. PRIVATE TRADE OR EMPLOYMENT :

(a) No officer of the Corporation shall, except with the previous permission of the Chairman and Managing
Director, engage directly or indirectly in any trade or business or undertake any other employment.

Provided that an officer may, without such sanction, undertake honorary work of a social charitable nature
or occasional work of a literary, artistic or scientific nature, subject to the condition that his official duties
do not thereby suffer, but he shall not undertake or shall not undertake or shall discontinue such w ork if
so directed by the Chairman and Managing Director.

(b) Every officer of the Corporation shall report to the Chairman and Managing Director, if any member of
his family is engaged in a trade or business or owns or manages an insurance agency or commission
agency.

(c) No officer of the Corporation, shall without the previous permission of the Chairman and
Managing Director, except in the discharge of his official duties, take part in the registration,
promotion or management of any bank or other company which is required to be registered under
the Companies Act, 1956 or any other law for the time being in force or any co-operative society for
commercial purposes.

Provided that an officer of the Corporation may without such sanction, take part in the registration,
promotion or management of a Consumer / House Building Co-operative Society, substantially for the
benefit of the employees of the Corporation, (registered under the Co-operative Societies Act, 1912 (II)
of 1912) or any other law for the time being in force or of a literary, scientific or charitable society
registered under the Societies Registration Act, 1860 (XXI of 1860) or any corresponding law in force

(d) No officer of the Corporation may accept any fee or any pecuniary advantage for any work done by him
for any public body or any private person without the permission of the Chairman and Managing
Director.

12. INSOLVENCY AND HABITUAL INDEBTEDNESS:

(a) An officer of the Corporation shall avoid habitual indebtedness unless he proves that such
indebtedness or insolvency is the result of circumstances beyond his control and does not proceed
from extravagance or dissipation.
(b) An officer of the Corporation who applies to be or is adjudged or declared insolvent shall forthwith report
the fact to the Chairman and Managing Director.

13. MOVEABLE, IMMOVEABLE AND VALUABLE PROPERTY:

+1. Every officer on his first appointment to any service or post and thereafter at , as may be specified by the
Corporation, shall submit a return of his assets and liabilities in the Form (Schedule III) prescribed by the
Corporation, giving full particulars regarding :

(a) The immoveable property inherited by him or owned or acquired by him, held by him on lease or
mortgage either in his name or in the name of any other member of his family or in the name of
any other person.

(b) Shares, debentures and cash, including bank deposits inherited by him or similarly owned,
acquired or held by him.

(c) Other ‘movable property’ * inherited by him or similarly owned, acquired or held by him, if the
value of such property exceeds two months’ basic pay of such employee at the time of his
appointment. In case of an Officer Trainee, the amount would be equivalent to one month’s stipend of
the concerned Officer Trainee.

(d) Debts and other liabilities incurred by him directly or indirectly.

N.B.: Periodicity shall be annual unless otherwise notified.

2. No officer of the Corporation shall, except with the previous knowledge of the competent authority,
acquire or dispose of any immoveable property by lease, mortgage, purchase, sale, gift or otherwise
either in his own name or in the name of any member of his family.
+ Amendment effective January 01, 2014

[9]
 3. No officer of the Corporation shall, except with the previous sanction of the competent authority,
enter into any transaction concerning any moveable or immoveable property with a person or a firm
having official dealings with the officer or his subordinates.

4. No officer shall, except with the specific prior approval of the competent authority, in writing, make any
transaction in relation to any property leased or mortgaged to the Corporation.

+5. “Every Officer of the Corporation shall report to the Chairman and Managing Director every transaction
concerning moveable property owned or held by him in his own name or in the name of a member of his
family if the value of such property exceeds two months’ basic pay of such employee at the time of
transaction (in the prescribed form in Schedule III).

6. The Chairman and Managing Director may at any time, by general or special order, require an
officer to submit within a period specified in the order, a full and complete statement of such movable
or immovable property held or acquired by him or on his behalf or by any member of his family as
may be specified in the order. Such statement shall, if so required, include details of the means by which
or the source from which such property was acquired.

+ Explanation: For the purpose of Rule 13, the expression ‘movable property’ includes:
th
(a) Jewellery, Insurance policies - the annual premium of which exceeds Rs 50,000/- or 1/6 of the
total annual emoluments received from the Corporation, whichever is less, shares, securities and
debentures;

(b) Loans advanced/taken by such officer, whether secured or not;

(c) Motor cars, motor cycles or any other means of conveyance;

(d) Furniture and Electronic/Home and other Appliances.

Note:

Transactions entered into by the spouse or any other member of the family of an officer of the Company out of
his own funds (including stridhan, gifts, inheritance, etc.) as distinct from the funds of the officer of the
Corporation, in his own name and in his own rights, would not attract the provision of this sub-rule.

However, in respect of joint property held with partial funding by an officer, alongwith his/her spouse and/or any
other member of the family, the same needs to be informed to the concerned authority like any other transaction.

++7. Officers of the Corporation should not purchase shares out of the quota reserved for friends and
associates of Directors of Companies.

+++ 13A DEALING IN SHARES

The following provisions shall become applicable only at the time when the Corporation issues shares by way of
Initial Public Offer (IPO)/Follow-on Public Offer (FPO), to officers who are concerned with issuance of IPO/FPO,
to officers involved in the price fixation process of an IPO/FPO and to officers who are otherwise in possession
of unpublished price sensitive information in respect of shares of the Corporation:
1. Every officer including full-time Directors of the Corporation involved in the decision making process of fixation of
price of an IPO/FPO of shares of the Corporation, shall not apply either himself/herself or through any member
of his/her family or through any other person acting on his/her behalf for allotment of shares (which includes all
type of equity related instruments) in an IPO/FPO of the Corporation, even out of the category of preferential
quota reserved for employees/Directors of the Corporation.
2. Every officer including full time Directors of the Corporation, who are in possession of unpublished price
sensitive information would be prohibited from dealing/transacting either in their own name or through any
member of their family in the shares of the Corporation.
3. Every officer including full-time Director of the Corporation or any member of his/her family or any person acting
on his/her behalf shall not apply for shares out of any preferential quota reserved for employees/Directors of
other companies.
4. Every officer including full-time Directors of the Corporation shall report to the C&MD, all transactions of
purchase/sale in shares worth Rs.20,000/- or more in value or existing holding/interest in the shares worth
Rs.20,000/- or more in the Corporation, either in his/her own name or in the name of any family member
indicating quantity, price, date of transaction and nature of interest within four working days.

+ Amendment effective January 01, 2014 ; ++Amendment effective May 18, 1993 ;
+++Amendment effective Februray 8, 2010
[10]
14. VINDICATION OF ACTS AND CHARACTER OF OFFICERS :

No officer shall, except with the previous sanction of the Chairman and Managing Director, have recourse to
any court or to the press for the vindication of any official act which has been the subject matter of adverse
criticism or an attempt of a defamatory character.

Explanation : Nothing in this rule shall be deemed to prohibit an officer from vindicating his private character
or any act done by him in his private capacity.

15. CANVASSING OR NON - OFFICIAL OR OTHER OUTSIDE INFLUENCES :

No officer shall bring or attempt to bring any political or other outside influence to bear upon any superior
authority to further his interest in respect of matters pertaining to his service in the Corporation.

16. BIGAMOUS MARRIAGE :

(a) No officer shall enter into or contract a marriage with a person having a spouse living; and

(b) No officer having a spouse living shall enter into or contract a marriage with any person.

Provided that the Board may permit an employee to enter into or contract any such marriage as is referred to
in sub-clause (a) or (b) above, if it is satisfied that -

(i) such marriage is permissible under the personal law applicable to such employee and the other party
to the marriage; and

(ii) there are other grounds for so doing.

17. OFFICERS MARRYING FOREIGNERS :

Any officer of the Corporation who has married/ marries a foreigner will be required to inform in writing to his/ her
General Manager of such marriage immediately after such marriage has been solemnized, giving the name
and nationality of the foreigner.

18. EMPLOYMENT OF NEAR RELATIVES OF THE OFFICER OF THE CORPORATION IN ANY

COMPANY OR FIRM ENJOYING THE PATRONAGE OF THE CORPORATION :

(a) No officer shall use his position or influence directly or indirectly to secure employment for any person
related, whether by blood or marriage, to the officer or to the officer's wife or husband whether
such a person is dependent on the officer or not.

(b) No officer shall, except with the previous sanction of the Chairman and Managing Director, permit his
son, daughter or any member of the family to accept employment with any company or firm with which
he has official dealings or with any other company or firm having official dealing with the Corporation,
provided that where the acceptance of the employment cannot await the prior sanction of the
Chairman and Managing Director, the employment may be accepted provisionally subject to the
permission of the Chairman and Managing Director to whom the matter shall be reported forthwith.

(c) No officer shall, in discharge of his official duties, deal with any matter or give or sanction any contract to
any company or firm or any other person if any member of his family is employed in that company or
firm or under that person or if he or any member of his family is interested in such matter or contract
or in any other matter and the officer shall refer every such matter or contract to his official superior
and the matter or the contract shall thereafter be disposed of according to the instructi ons of the
authority to whom the reference is made.

19. PATENT FOR INVENTION MADE :

The Corporation's officer, whose duties involve carrying out of scientific or technical research, shall not apply for
or obtain, cause or permit any other person to apply for or obtain a patent for an invention made by such an
officer save with the permission of the Chairman and Managing Director and in accordance with such
conditions as the Chairman and Managing Director may impose.

[11]
20. ACCEPTANCE OF REWARDS :

No officer of the Corporation shall, except in the following cases, accept without prior approval of the Chairman
and Managing Director, a reward from any source :

(a) Premium awarded for any essay or play in public competition.

(b) Any reward offered for the arrest of a criminal or for special service in connection with the administration
of justice.

(c) Any reward payable in accordance with the provisions to any act or regulation or rules framed there
under.

(d) Any reward sanctioned for services in connection with administration of the Customs and Excise laws.

(e) Any fees payable to the officer for duties which is required to perform in his official capacity under any
special or local law or by order of Government.

21. INVESTMENT, LENDING AND BORROWING :

No officer of the Corporation shall, save in the ordinary course or business with a bank, the Life Insurance
Corporation or a firm of standing, borrow money from or lend money to or otherwise place himself under
pecuniary obligation to any person with whom he has or is likely to have official dealings or permit any such
borrowing, lending or pecuniary obligation in his name or for his benefit or for the benefit of any member of his
family.

22. AN OFFICER OF THE CORPORATION SHALL :

(a) Strictly abide by any law relating to intoxicating drinks or drugs in force in any area in which he/she may
happen to be for the time being;

(b) Not be under the influence of any intoxicating drink or drug during the course of his/her duty and shall
also take care that the performance of his/her duties at any time is not affected in any way by the
influence of such drink or drug;

(c) Refrain from consuming any intoxicating drink or drug in a public place.

(d) Not appear in a public place in a state of intoxication;

(e) Not use any drug and not use any intoxicating drink to excess.

Explanation : For the purpose of this rule, public place means any place or premises (including clubs even
exclusively meant for members where it is permissible for the members to invite non-members as guests, bars
and restaurants, conveyance) to which the public have or are permitted to have access, whether on payment or
otherwise.

23. EVIDENCE BEFORE COMMITTEE OR ANY OTHER AUTHORITY :

(a) Save as provided under sub-rule (c), no officer of the Corporation shall, except with the previous
permission of the Chairman and Managing Director, give evidence in connection with any enquiry
conducted by any person, committee or authority.

(b) Where permission has been accorded under sub-rule (a) no officer, giving such evidence, shall criticize
the policy or any action of the Central Government or of a State Government or of the Corporation.

(c) Nothing in this rule shall apply to :

(i) Evidence given at any enquiry before an authority appointed by the Government, Parliament or a
State Legislature;

(ii) Evidence given in any judicial enquiry;

[12]
 (iii) Evidence given in any departmental enquiry.

24. PUBLIC DEMONSTRATION IN HONOUR OF CORPORATION'S OFFICERS:

No officer shall, except with the previous permission of the Chairman and Managing Director, attend any
complimentary or valedictory address or accept any testimonial or attend any meeting or entertainment held in
his honour or in the honour of any other employee of the Corporation provided that nothing in this rule shall
apply to :-

(i) A farewell entertainment of a substantially private and informal character held in honour of the officer or
any other employee on the occasion of his retirement or transfer or any person who has recently quit
the Corporation's services, or

(ii) Acceptance of simple and inexpensive entertainment arranged by public bodies and institutions.

+25. POST RETIREMENT APPOINTMENT/ EMPLOYMENT :

No officer of the Corporation who has retired from the service of the Corporation, after such retirement shall

accept any appointment for post, whether advisory or administrative, in any firm or company, whether Indian or
Foreign with which the Corporation has or had business relations, within 2 years from the date of his/ her
retirement, without prior approval of the Competent Authority.

++26. APPLICATION FOR EMPLOYMENT:

No officer shall directly forward his application for employment to any Government (Central/State) or Semi-Government
Department or public undertaking (in India or abroad), without informing the Competent Authority@ in writing in this behalf and
in accordance with the rules framed by the Corporation in this regard.

@ GM/ED-HRD

+ Amendment effective March 08, 1999 ; ++ Amendment effective January 01, 2014

[13]
 PART - II
DISCIPLINE AND APPEAL RULES

A. MISCONDUCT:

Without prejudice to the generality of the term 'Misconduct', the following acts of omission and
commission, 'inter-alia', shall be treated as misconduct:

1. Theft, fraud, forgery, embezzlement, misappropriation, dishonesty in connection with the business or
property of the Corporation or of property of another person within or outside the premises of the
Corporation.

2. Taking or giving bribes or any illegal gratification.

3. Possession of pecuniary resources or property disproportionate to the known sources of income

by the officer or on his behalf by another person, which the officer cannot satisfactorily account for.

4. Making use of one’s position in the Corporation to influence parties associated with or others connected
with the Corporation's business for personal gains.

5. Giving false information regarding one's name, age, father's name, qualifications previous service or
any other matter germane to the employment at the time of employment or during the course of
employment.

6. Acting in a manner prejudicial to the interest of the Corporation.

7. Wilful insubordination or disobedience whether or not in combination with others, of any lawful and
reasonable order of his superior.

8. Absence without leave or over-staying the sanctioned leave without sufficient reasons or proper or
satisfactory explanation.

9. Habitual late or irregular attendance.

10. Neglect of work or negligence in the performance of duty including malingering or slowing down of work.

11. Wilful damage to any property of the Corporation or to work in process or wilful falsification, defacement
or destruction of any record of the Corporation.

12. Interference or tampering with any safety devices installed in or about the premises of the Corporation.

13. Consuming intoxicating drinks or drunkenness or riotous or disorderly or indecent behaviors in the
premises of the Corporation and drunkenness or riotous or disorderly or indecent behaviors outside
such premises where such behavior is related to or connected with the employment.

14. Gambling within the premises of the establishment.

15. Smoking within the premises of the establishment except at place or places, if any, specified for the
purpose

16. Collection without permission of the Competent Authority of any money within or outside the premises of
the Corporation, except as sanctioned by any law of the land for the time being in force or rules of the
Corporation.

17. Commission of any act which amounts to a criminal offence involving moral turpitude.

[14]
 18. Purchasing properties, machinery, stores, etc. from or selling properties, machinery, stores, etc. to the
Corporation without express permission in writing from the competent authority.

19. Going on illegal strike or abetting, inciting, instigating or acting in furtherance thereof.

20. Breach of rules duly notified or violation of procedures laid down in connection with the Corporation's
business.

21. Abetment of or attempt at abetment of any act which amounts to misconduct.

22. Commissioning of any act subversive of discipline or good behaviour.

23. Non-observance of any safety precautions or rules on the subject.

24. Being found in possession of matches, lighters, fuses or any other appliances used for producing ignition
or explosion within Refinery/ Plant/ Installation/ Aviation Station/ Depot/ Auto Care Centre premises in
contravention of any rules duly notified.

25. Engaging in trade or business within the premises of the establishment or outside, including lending or
borrowing money to and from other employees of the Corporation during or outside working hours or with
anyone having official dealings with the Corporation.

26. Unauthorized use of Corporation's premises, quarters or land.

27. Threatening, abusing or assaulting and/or obstructing employees in the discharge of their duties
or instigating other employees to act against the Corporation either inside or outside the premises
of the Corporation.

28. Taking part in subversive activities.

28-A. Being a member of office bearer or otherwise associated with any political party or organisation which
takes part in politics or otherwise contravening Rule 4A of Part I.

29. Malicious or false allegations against an officer of the Corporation or the Corporation's staff.

30. Breach of laws applicable to the establishment or of rules made there under.

31. Violation of conduct rules made by the Corporation.

32. Taking part in activities connected with raising funds/ donations / contributions for any cause without prior
permission from Functional Director.

+33. Any act of sexual harassment of any woman at her work place.

++34. Approaching external authorities to exert influence on officers of the Corporation for
appointments/assignments/ transfers/promotions or any other gain or personal favour to further the
officer’s interest in respect of matters pertaining to his service.

++35. Use of disrespectful or un-parliamentary language in any official correspondence or in any

representation including appeal.

++36. Disclosing to any unauthorized person or persons any confidential information in regard to the working
or process of the Corporation which comes into the possession of the officer during the course of his work.

++37. Use of official e-mail, internet or other electronic equipment or facilities provided by the Corporation
including Groupwise etc. in violation of the guidelines of the Corporation

+ Amendment effective March 08, 1999 ; ++ Amendment effective January 01, 2014

[15]
B. PENALTIES:

The following penalties may be imposed on an officer as hereafter provided, for misconduct committed by him or
for any other good and sufficient reasons:

1. Minor Penalties:

(a) Censure.
(b) Withholding of one or more increments of salary for a specified period with or without cumulative
effect.
(c) Withholding of promotion for a specified period.

(d) Recovery from salary or such other amount as may be due to him of the whole or part of any
pecuniary loss caused to the Corporation by negligence or breach of orders.

+(e) Reduction to a lower stage in the time scale of pay for a period not exceeding three years, without
cumulative effect and not adversely affecting his terminal benefits.

++(f) Recovery/Forfeiture of Performance Related Pay, partial or full, which has been disbursed or is
due to be disbursed to the officer, in the period during which his act of omission/ commission was
committed.

2. Major Penalties:

++(a) Save as provided for in clause 1(e), reduction to any lower stage in the time scale of pay for a
specified period, with further direction as to whether or not the employee will earn increments of
pay during the period of such reduction and whether on expiry of such period, the reduction will or
will not have the effect of postponing the future increment of pay.

+(b) Reduction to a lower time scale of pay, grade, post or service which shall ordinarily be a bar to the
promotion of the employee to the time scale of pay, grade, post from which he was reduced with or
without further direction regarding conditions of restoration to the grade or post from which the
employee was reduced and his seniority and pay on such restoration to the grade or post.

+(c) Premature retirement.

(d) Removal from service which shall not be a disqualification for future employment.

(e) Dismissal from service which shall ordinarily be a disqualification for future employment under the
Government or the Corporation/ Company owned or controlled by the Government.

+Provided that, in every case in which the charge of possession of assets disproportionate to
known sources of income or the charge of acceptance from any person of any gratification, other
than legal remuneration, as of motive or reward for doing for forbearing to do any official act is
established, the penalty mention in Clause 2 (d) or (e) shall be imposed, provided further that in
any exceptional case and for special reasons recorded in writing any other penalty may be
imposed.

Explanation: The following shall not amount to a penalty within the meaning of this rule:

(i) Withholding of increment of an officer on account of his work being found unsatisfactory or not
being of the required standard.

(ii) Termination of service of an officer appointed in a temporary capacity or on probation on the

expiration of the period for which he was appointed or during probationary period or earlier in
accordance with the terms of his appointment.

C. SUSPENSION:

++1. The Appointing Authority or any authority to which it is subordinate or the Disciplinary Authority or
any other authority empowered in that behalf by the Committee of Functional Directors (CFD), by general or

+ Amendment effective December 26, 2008 ; ++ Amendment effective January 01, 2014

[16]
 special order, may place an officer under suspension :

(a) Pending enquiry proceedings against him contemplated or initiated;

(b) Where a case against him in respect of a criminal offence involving moral turpitude is under investigation
or trial.

2. An Officer who is detained in custody, whether on a criminal charge or otherwise for a period exceeding
one week shall be deemed to have been suspended from the date of detention until further notice.

3. The suspension order shall take effect immediately on communication thereof. Provided that in case of
sub-clause (2) above, the suspension shall take effect from the date indicated in the sub-clause.

4. The suspended officer shall not normally be required to record his attendance at the usual specified time
& place daily, unless otherwise specifically instructed.

However, the suspended officer shall not leave the station of his posting without prior written approval of
the Competent Authority and he shall immediately notify, on suspension, his correct local postal address
to enable the corporation to send all communications during his period of suspension.

+5. An order of suspension made or deemed to have been made under Rule C-1 or Rule C-2 above may
be revoked by the Authority which made or is deemed to have made the order or by any authority to
which that authority is subordinate, provided however that the enquiry proceedings would continue.

An order of suspension made under Rule C-1 or Rule C-2 shall be reviewed by the Authority which is
competent to revoke the suspension, before expiry of ninety days from the date of order of suspension,
on the recommendation of the Suspension Revocation Review Committee consisting of Disciplinary
Authority, Appellate Authority and GM / ED – ER and pass orders either extending or revoking the
suspension. Provided that the suspension will not be revoked for officers who are detained in custody as
per Rule C-2. Subsequent reviews shall be made before expiry of the extended period of suspension on
regular intervals of one hundred and eighty days at a time.

D. SUBSISTENCE ALLOWANCE:

1. (a) The suspended officer, during the period of suspension shall be entitled to a subsistence
allowance equal to half of the salary (i.e. basic plus dearness allowance plus adhoc relief, if
any); plus other compensatory allowance normally admissible.

(b) In case of prolonged suspension, the payment of CCA and HRA (as part of the
compensatory allowance) at full rates, as mentioned in Clause (I)(a) above, shall be reviewed
after a period of four months for continuation at full rate or otherwise.

2. Where the period of suspension exceeds six months, the amount of subsistence allowance
may be increased by suitable amount not exceeding 50% of the subsistence allowance
payable during the period of the first six months at the discretion of the Competent Authority.

3. The amount of subsistence allowance may be reduced to 25% of the subsistence allowance
initially payable if in the opinion of the Competent Authority, the period of suspension has
been prolonged due to reasons to be recorded in writing directly attributable to the officer
under suspension.

4. The suspended officer shall not, during the period of suspension, take up any employment,
profession or any other vocation with any other organisation on any terms.

E. TREATMENT OF THE PERIOD OF SUSPENSION :

1. If the suspension of an officer is held to be unjustified or not wholly justified or if the officer who
has been dismissed, removed or suspended is reinstated, the competent authority, whose decision
shall be final, may grant him for the period of his absence from duty :-

(a) If he is exonerated, full salary and allowances to which he would have been entitled if he was not
dismissed, removed or suspended, less the subsistence allowance already paid to him.

(b) If otherwise, such proportion of salary and allowances as the Competent Authority may prescribe.

+ Amendment effective January 01, 2014

[17]
 (c) In a case falling under sub-clause (a) above, the period of absence from duty will be treated
as a period spent on duty.

In a case falling under sub-clause (b) above, it will not be treated as period spent on duty
unless the Competent Authority, whose decision will be final, directs otherwise.

F. PROCEDURE FOR IMPOSING MAJOR PENALTIES:

Subject to the provisions of ‘Rule H’ below:

1. No order imposing any of the major penalties specified in Rule B shall be made except after an enquiry is
held in accordance with this rule.

+2. Whenever the disciplinary authority is of the opinion that there are grounds for enquiring into the truth of
any imputation of misconduct or misbehavior against an officer, if may itself enquire into or appoint an
Officer or a retired Officer of the Corporation or a retired Public Servant– Government/ PSU
(hereinafter called the Enquiring Authority) to enquire into the truth thereof. Provided that the sanction of
the concerned Functional Director will be required to appoint a retired officer of the Corporation or a
retired Public Servant – Government/ PSU as Enquiring Authority.

3. Where it is proposed to hold an enquiry the Disciplinary Authority shall frame definite charges on the
basis of the allegations against the officer. The charges, together with a statement of the allegations
on which they are based, copies of documents by which and a list of witnesses by whom the articles of
charges are proposed to be sustained, shall be communicated in writing to the officer, who shall be
required to submit within such time as may be specified by the Disciplinary Authority (not
exceeding 15 days), a written statement whether he admits or denies any of or all the articles of
charge.

4. On receipt of the written statement of the officer or if no such statement is received within the time
specified, an enquiry may be held by the Disciplinary Authority itself, or by the Enquiring Authority
appointed under sub-clause (2).

Provided that it may not be necessary to hold an enquiry in respect of the charges admitted by
the officer in his written statement. The disciplinary authority shall, however, record its findings on
each such charge.

5. Where the disciplinary authority itself enquires or appoints an Enquiring Authority for holding an
enquiry, it may by an order appoint an officer or a retired Officer of the Corporation to be known
as the 'Presenting Officer' to present on its behalf the case in support of the articles of charge. Provided
that the sanction of the concerned Functional Director will be required to appoint a retired officer of the
Corporation as Presenting Officer

6. The charged officer may take the assistance of an officer or a retired officer of the Corporation, but may
not engage a legal practitioner for the purpose.

7. On the date fixed by the Enquiring Authority the officer shall appear before the Enquiring Authority at the
time, place and date specified in the notice. The Enquiring Authority shall ask the officer whether he
pleads guilty or has any defence to make and if he pleads guilty to any of the articles of charge, the
Enquiring Authority shall record the plea, sign the record and obtain the signature of the officer
concerned thereon. The Enquiring Authority shall return a finding of guilt in respect of those articles of
charge to which the officer concerned pleads guilty.

8. If the officer does not plead guilty, the Enquiring Authority shall adjourn the case to a later date not
exceeding seven days, after recording an order that the officer may, for the purpose of preparing his
defence:
(i) Inspect the documents listed with the charge-sheet;

(ii) Submit a list of additional documents and witnesses that he wants to examine and ;

(iii) Be supplied with the copies of the statements of witnesses, if any, listed in the charge sheet.

+ Amendment effective September 18, 2008

[18]
 Note : Relevancy of the additional documents and the witnesses referred to in sub-clause 8(ii)
above will have to be given by the officer concerned and the documents and the witnesses shall be
summoned if the Enquiring Authority is satisfied about their relevance to the charges under enquiry.

9. The Enquiring Authority shall ask the authority in whose custody or possession the documents are
kept, for the production of the documents on such date as may be specified.

10. The authority in whose custody or possession the requisitioned documents are, shall arrange to produce
the same before the Enquiring Authority on the date, place and time specified in the requisition notice.

Provided that the authority having the custody or possession of the requisitioned documents
may claim privilege if the production of such documents will be against the public interest or
interest of the Corporation/Company. In that event, it shall inform the Enquiring Authority accordingly.

11. On the date fixed for the enquiry, the oral and documentary evidence by which the articles of charge are
proposed to be proved shall be produced by or on behalf of the Disciplinary Authority. The witnesses
shall be examined by or behalf of the Presenting Officer and may be cross-examined by or on behalf of
the officer. The Presenting Officer shall be entitled to re-examine the witnesses on any points on
which they have been cross-examined, but not on a new matter, without the leave of the Enquiring
Authority. The Enquiring Authority may also put such questions to the witnesses as it thinks fit.

12. Before the close of the prosecution case, the Enquiring Authority may, in its discretion allow the
Presenting Officer to produce evidence not included in the charge sheet or may itself call for new
evidence or recall or re-examine any witness. In such case the officer shall be given opportunity to
inspect the documentary evidence before it is taken on record, or to cross-examine, a witness, who has
been so summoned.

13. When the case for the Disciplinary Authority is closed, the officer may be required to state his defence,
orally or in writing, as he may prefer. If the defence is made orally, it shall be recorded and the officer
shall be required to sign the record. In either case a copy of the statement of defence shall be given to
the Presenting Officer, if any, appointed.

14. The evidence on behalf of the officer shall then be produced. The officer may examine himself in his own
behalf if he so prefers. The witnesses produced by the officer shall then be examined and shall be
liable to cross-examination, re-examination and examination by the Presenting Officer according to the
provision applicable to the witnesses for the Disciplinary Authority.

15. The Enquiring Authority may, after the officer closes his case, and shall, if the officer has not examined
himself, generally question him on the circumstances appearing against him in the evidence for the
purpose of enabling the officer to explain any circumstances appearing in the evidence against him.

16. Within 15 days of the completion of the production of evidence, the Presenting Officer may submit a
written brief of his case to the Enquiring Authority with a copy to the charged officer. The charged officer
may submit his written brief to the Enquiring Authority within 15 days of the receipt of the written brief of
the Presenting Officer.

17. If the officer does not submit the written statement of defence referred to in sub-rule (3) on or before the
date specified for the purpose or does not appear in person, or through the assisting officer or otherwise
fails or refuses to comply with any of the provisions of these rules, the Enquiring Authority may hold the
enquiry ex-parte.

18. Whenever any Enquiring Authority after having heard and recorded the whole or any part of the
evidence in an enquiry ceases to exercise jurisdiction therein, and is succeeded by another
Enquiring Authority which has, and which exercises such jurisdiction, the Enquiring Authority so
succeeding may act on the evidence so recorded by its predecessor and partly recorded by itself.

Provided that if the succeeding Enquiring Authority is of the opinion that further examination of any
of the witnesses whose evidence has already been recorded is necessary in the interest of
justice, it may recall, examine, cross-examine and re-examine any such witnesses as herein before
provided.

19. (i) After the conclusion of the enquiry, report shall be prepared and it shall contain:-

(a) a gist of the articles of charge and the statement of the imputations of misconduct or misbehavior;

(b) a gist of the defense of the officers in respect of each article of charge;
[19]
 (c) an assessment of the evidence in respect of each article of charge;

(d) the findings on each article of charge and the reasons therefore.

Explanation : If in the opinion of the Enquiring Authority the proceedings of the inquiry establish any
article of charge different from the original articles of the charge, it may record its findings on
such article of charge.

Provided that the findings on such article of charge shall not be recorded unless the officer has either
admitted the facts on which such article of charge is based or has had a reasonable
opportunity of defending himself against such article of charge.

(ii) The Enquiring Authority, where it is not itself the Disciplinary Authority, shall forward to the
Disciplinary Authority the records of enquiry which shall include :-

(a) the report of the enquiry prepared by it under sub-clause (i) above;

(b) the written statement of defence, if any, submitted by the officer referred to in sub- rule
(13);

(c) the oral and documentary evidence produced in the course of the enquiry;

(d) written briefs referred to in sub-rule (16), if any;

(e) the orders, if any, made by the Disciplinary Authority and the Enquiring Authority in regard
to the enquiry; and

(f) the Enquiry Officer shall submit his report to the Disciplinary Authority within 30 days of
receipt if any of written briefs referred to in sub-rule (16) or such extended period as may
be approved in writing by the Disciplinary Authority.

20. Action on the Enquiry Report :

(i) The Disciplinary Authority, if it is not itself the Enquiring Authority may, for reasons to be
recorded by it in writing, remit the case to the Enquiring Authority for fresh or further enquiry
and report and the Enquiring Authority shall thereupon proceed to hold the further enquiry
according to the provisions of this rule.

+(ii) The Disciplinary Authority shall, if it disagrees with the findings of the Enquiring Authority on any
article of charge, record its reason for such disagreement and record its own findings on such
charge, if the evidence on record is sufficient for the purpose.

+(iii) The Disciplinary Authority shall furnish to the Charged Officer the Enquiry Officer's Report, seeking
his reply within 15 days from the date of receipt of the said report. The Charged Officer may make
his submissions on the report of the Enquiry Officer, if he so desires within 15 days of receipt of the
Enquiry Officer's Report.

In case Enquiry Officer does not hold guilty of all/ any of the charges and the Disciplinary Authority
disagrees with all/ any of the findings of the Enquiry Officer and propose to hold the charged officer
guilty of those charges, such disagreement findings shall be sent to the Charged Officer for his
say, if any, along with the Enquiry Officer's Report before issuing the final Order. The Charged
Officer shall reply to the Disciplinary Authority within 15 days of receipt of such disagreement note
to persuade DA to accept the favorable conclusion of the Enquiry Officer.

The Disciplinary Authority thereafter, having regard to the submissions made by the Charged
Officer on the Enquiry Officer's Report or on Disciplinary Authority's disagreement findings (as the
case may be) on all or any of the articles of charges, comes to the conclusion that any of the
penalties as mentioned in Rule B should be imposed on the Officer, make an Order imposing such
penalty. The Order of the penalty in writing shall be then forwarded to the Charged Officer.

(iv)
If the Disciplinary Authority having regard to its findings on all or any of the articles of charge, is
of the opinion that no penalty is called for, it may pass an order exonerating the officer
concerned.
+ Amendment effective June 22, 2006
[20]
 (v) The Disciplinary Authority shall take all possible steps to see that the enquiry is complete within
180 days. In exceptional cases based on a review of the course of enquiry, such period may be
extended upto a reasonable period in writing by the Disciplinary Authority. The period of 180 days
shall be from the date of enquiry ordered by Disciplinary Authority and completion would
denote passing of necessary orders by Disciplinary Authority.

+21. (i) Notwithstanding that an officer is entitled to and has retired or superannuated from the service of
the Corporation, if disciplinary proceedings have been initiated while the officer was in service, the
disciplinary proceedings shall continue and be concluded in the same manner as if the officer had
continued in service.
(ii) For the purposes of this Rule, a disciplinary proceeding shall be deemed to have been commenced
as soon as a decision is taken by the Disciplinary Authority to commence disciplinary proceedings
against the officer, even if a Charge-sheet/Memorandum pursuant to the said decision has not
been or could not be served upon the officer prior to the date of his presumptive retirement or
superannuation, as the case may be.
(iii) Once such disciplinary proceedings have been commenced, it will be open to the Disciplinary
Authority, at any time before the conclusion of the disciplinary proceedings, to add to any charge(s)
by issue of a supplementary charge-sheet/memorandum, if necessary. The same procedure shall
be followed with respect to the supplementary charges as is applicable with respect to the original
charge(s) for which the disciplinary proceedings commenced.
(iv) The penalty(ies) imposed on the officer as a result of such proceedings shall be deemed to have
taken effect immediately prior to the officer’s presumptive retirement or superannuation, as the
case may be.

G. PROCEDURE FOR IMPOSING MINOR PENALTIES:

+1. If it is proposed to impose any minor penalties specified in Rule B, the officer concerned shall be
served a Memorandum of imputations of misconduct/ misbehavior against him and given an opportunity
to submit his reply within a specified period not exceeding 10 days. The Disciplinary Authority or
Competent Authority shall take into consideration the statement, if any, submitted by the concerned
officer before passing orders. (* Amended effective 22.06.2000)

2. The Disciplinary Authority or Competent Authority shall communicate in writing the order awarding minor
penalty to the concerned officer.

H. SPECIAL PROCEDURE IN CERTAIN CASES:

Notwithstanding anything contained in Rule F or G, the Board or the *CFD may impose any of the penalties
specified in Rule B in any of the following circumstances:

1. The officer has been convicted on a criminal charge or on the strength of facts or conclusions arrived at
by a judicial trial; or

2. Where the Chairman and Managing Director is satisfied that it is not reasonably practicable to hold an
enquiry in the manner provided in these rules, in such a case, the Chairman and Managing Director shall
record the reasons for his conclusions.

3. Where the Chairman and Managing Director is satisfied that in the interest of security of the
Corporation, it is not expedient to hold an enquiry in the manner provided in these Rules.

++4. Where the Officer has not submitted his Goals & Targets and Quarterly Performance Reviews/ Self
Assessment for three out of the preceding five years.

I. SEPARATION PENDING DISCIPLINARY PROCEEDINGS:

The Corporation reserves the right not to accept the resignation of an officer against whom disciplinary
proceedings are pending or contemplated.

+ Amendment effective June 22, 2000 ; ++ Amendment effective December 26, 2008

[21]
J. PROCEDURE AND CONTENTS OF APPEAL:

1. If an officer who has been found guilty and / or awarded a major or minor penalty desires to submit an
appeal, he shall do so separately and in his own name, to the Appellate Authority as detailed in the
Schedule of Disciplinary Authority. The appeal shall, however, be submitted through the authority
whose order is appealed against.

2. The appeal shall be addressed to the Appellate Authority and shall contain all material statements
and arguments on which the appellant relies and shall not contain any disrespectful or improper
language and shall be complete in itself.

+3. No appeal under these rules shall be entertained unless it is submitted within a period of three m onths
from the date on which the appellant receives the order appealed against. Such period will be only
one month in the case of penalty of censure.

4. The authority who passed the order which is appealed against, may withhold the appeal if it is not
made in accordance with the Rules and submitted within the time limit, or if it is a repetition of an appeal
already decided and no new facts and / or circumstances / considerations have been adduced.

5. The Appellate Authority shall consider whether the findings are justified or whether the penalty is
excessive or inadequate and pass appropriate orders confirming, enhancing, reducing or setting aside
the penalty or remitting the case to the authority which imposed the penalty or to any other authority with
such direction as it may deem fit in the circumstances of the case.

6. Provided that if the enhanced penalty which the Appellate Authority proposes to impose is a major
penalty specified in Rule B-2, an enquiry as provided in Rule F has not already been held in the case, the
Appellate Authority shall direct that such enquiry be held in accordance with the provisions of Rule F and
thereafter consider the record of the enquiry and pass such orders as it may deem proper. If the Appellate
Authority desires to enhance the punishment but, an enquiry has already been held as provided in Rule
F, the Appellate Authority shall give a show cause notice to the officer, as to why the enhanced penalty
should not be imposed upon him. The Appellate Authority shall pass the final order after taking into
account the representation, if any, submitted by the Officer.

+7. An Officer (including one who has ceased to be such) may prefer an appeal against all or any of the
following orders, namely;
(a) an order of suspension made or deemed to have been made under Clause C of Part II;
(b) an order imposing any of the penalties specified in Clause B of Part II, made by the
Disciplinary Authority;
(c) an order :
(i) determining the subsistence and other allowances to be paid to him for the
period of suspension or for the period during which he is deemed to be under
suspension or for any portion thereof,

(ii) determining his pay and allowances :

(aa) for the period of suspension, or

(bb) for the period from the date of his dismissal, removal, compulsory
retirement from service or from the date of his reduction to a lower
service, grade or post, time scale of pay or stage in a time scale of pay,
to the date of his reinstatement or restoration to his service, grade or
post, or
(iii) determining whether or not the period from the date of his suspension or
from the date of his dismissal, removal, compulsory retirement or reduction
to a lower service, grade, post, time scale of pay or stage in a time scale of
pay to the date of his reinstatement or restoration to his service, grade or
post shall be treated as a period spent on duty for any purpose.

+8. Notwithstanding anything contained in Clause J.3 of Part II, the Appellate Authority may entertain the
Appeal after expiry of the said period, if it is satisfied that the Appellant had sufficient cause for not
submitting the Appeal in time.

K. PROCEDURE AND CONTENTS OF REVIEW:

1. If an officer desires to submit a further appeal for review after the Appellate Authority has given his
order, he shall do so separately and in his own name to the Reviewing Authority as detailed in the
Schedule of Disciplinary Authority. The appeal shall however, be submitted through the Appellate
Authority.
+ Amendment effective January 01, 2014
[22]
 2. The Rules I (2) to (5) pertaining to the procedure and contents of appeal will be followed for the review
except that the term Reviewing Authority will be substituted for Appellate Authority.

3. Notwithstanding anything contained in these Rules, the Reviewing Authority as specified in the
schedules may call for the record of the case within six months of the date of the final order and after
reviewing the case pass such orders as deemed fit.

Provided that if the Reviewing Authority proposes to impose a penalty which is a major penalty specified
in Rule B-2 and an enquiry as provided in Rule F has not already been held in the case, the Reviewing
Authority shall direct that such enquiry be held in accordance with the provisions of Rule F and
thereafter consider the records of the enquiry and pass such orders as it may deem proper. If the
Reviewing Authority desires to enhance the punishment but an enquiry has already been held as
provided in Rule F, the Reviewing Authority shall give a show cause notice to the Officer, as to why the
enhanced penalty should not be imposed upon him. The Reviewing Authority shall pass the final order
after taking into account the representation if any submitted by the Officer.

+ L. PREMATURE RETIREMENT:

An Officer who has attained the age of 50 years and is considered to be inefficient or medically unfit may be
prematurely retired by the Competent Authority.

Criteria for judging inefficiency or doubtful integrity of Officers is as follows :

(a) Inefficiency : Inefficiency will be established on the basis of the Performance Appraisal of the
Officers. Where the Officer has been given "unsatisfactory" performance ratings for three
consecutive years, his case would be considered for premature retirement by the Competent Authority.

(b) Doubtful Integrity – deleted

(b-1) Medical Unfitness:

Head of a Unit may, on medical grounds, refer an employee to a Medical Board (constituted by ED/ GM
of Unit/ Zone or HR Department and comprising of not less than two Medical Officers of the Corporation,
apart from a Specialist, and a Govt. Medical Advisor of status not less than of a Civil Surgeon) in any of
the following circumstances for a medical check-up and report on the nature and prognosis of disease, if
any, that he is suffering from.

Note: The term “Medical Officer” of the Corporation would include a Medical Practitioner as may have
been retained by the Corporation:-

1) When an employee owing to apparent physical or mental infirmity or deterioration in general

health, is unable to discharge his duties;

2) When an employee is reported to be suffering from incurable and infectious/ contagious disease;

3) When an employee is suffering from a curable disease but is not likely to be fit to resume his
normal duties within a period of 12 months;

4) When an employee, though attending duties, is found to be mentally deranged, or suffering from
lunacy or mental infirmity;

5) When an employee has been on leave for reasons of sickness for total period of 120 days
including Sundays, holidays and other closed days or more, during a continuous period of six
months; or

6) When an employee has been continuously on leave on medical grounds (other than maternity
leave) for 12 weeks including Sundays, holidays and other closed days.

+ Amendment effective December 26, 2008

[23]
 Based upon the report of the Medical Board, the Competent Authority may consider premature retirement
of an employee on medical grounds on the recommendations of the authority designated for
recommending premature retirement under the rules provided:

a) The employee is not fit to resume his duties within a period of 12 months, or

b) The employee is suffering from lunacy or mental derangement and his services cannot be
effectively utilized by the Corporation, or

c) The employee is suffering from incurable and infectious/ contagious disease and his attendance is
likely to pose health hazards to others.

(c) Benefits: The following benefits will be admissible to those retiring prematurely under this Scheme:

(i) Full PF contribution of the employer with accretions thereto in the account of the officer,
subject to the provisions of PF Rules applicable to him / her.

(ii) Gratuity for each completed year of service or part thereof as admissible under the Gratuity Rules
applicable.

(iii) Encashment of Earned Leave and Sick / half pay leave to the credit on the date of separation,
as per the rules of the Corporation.

(iv) Resettlement Concession comprising benefits as admissible on transfer for self and family
provided the officer avails such concession within six months of the date of separation.

(v) One month’s notice pay as per the terms of appointment applicable.

(vi) Post Retirement Medical Facility, as per the rules governing such facility.

(d) NOTES:

1. The amounts due to the Corporation from the Officer shall be recovered from the amounts
payable under the Scheme.

2. The Income-tax liability in respect of benefit under the Scheme shall be entirely that of the
Officer concerned.

3. The benefits under the Scheme shall not be admissible in respect of the following :

Where disciplinary action or prosecution in criminal court is pending or contemplated.

Where the separation of the Officer is brought about on account of his -

i) Resignation;

ii) Dismissal;

iii) Discharge

iv) Termination of services otherwise than through the operation of the Scheme;

v) Having abandoned the services of the Corporation; or

vi) Having lost lien on his appointment.

(e) COMPETENT AUTHORITY:

Category of Employees Competent Authority

Officers in Salary Grade `H' and above Board

Officers in Salary Gr. `A' to `G’ CFD

[24]
 (f) GENERAL :

1. The premature Retirement Scheme is independent of and without prejudice to the rights of the
Corporation to dispense with the services of Officers either under the contract of employment or
under the Conduct, Discipline and Appeal Rules, as may be applicable.

2. Payment under the Scheme is subject to the Officers' vacating Company owned / leased
accommodation and clearing in advance all outstanding dues.

3. Officers granted premature retirement under the Scheme shall not be eligible for re-employment in
any capacity in the Corporation.

4. The Scheme or the benefits there under shall not be deemed to be a matter of right or contract of
terms/conditions of the employment.

5. The Scheme and / or benefits there under are liable to be withdrawn in toto or in part at the sole
discretion of the Corporation without any notices and assigning any reasons therefore.

6. The Corporation also reserves its right to alter and or amend any or all of these rules and/ or the
conditions prescribed for the scheme.

+M. INTERPRETATION:

In case of any doubt regarding any of the provisions of these Rules, the matter shall be referred to the
Committee of Functional Directors through General Manager/Executive Director-ER for decision and the
decision of the Committee of Functional Directors shall be final.

N. AMENDMENTS:

The Board may amend, modify or add to these rules from time to time and all such amendments,
modifications or additions shall take effect from the date stated therein as it if were part of these rules.

+ Amendment effective January 01, 2014

[25]
ANNEXURES

[26]
 SCHEDULE – I
+ SCHEDULE OF DISCIPLINARY AUTHORITY

Salary Grade Nature of Penalty Disciplinary Authority Appellate Authority Reviewing Remarks
Authority
S/G ‘A’ to ‘D’ a)All penalties other a) Functional GM / a) Functional Director
than dismissal Executive Director *
C&MD
b) Dismissal b) Functional Executive b) Functional
Appl.to the
Director Director.*
Reviewing
authority can be
S/G ‘E’ & ‘F’ made only in
All penalties Functional Director * case of major
DCFD C&MD penalties
S/G ‘G’, ‘H’, ‘I’
or equivalent All penalties DCFD C&MD Board
grade

* Note : In respect of the functions reporting directly to C&MD, Director-HR would be the Disciplinary/Appellate Authority, as
the case may be.

++SCHEDULE - II

Deleted

+ Amendment effective January 01, 2014 ; ++ Deleted effective January 01, 2014

[27]
 SCHEDULE - III

HINDUSTAN PETROLEUM CORPORATION LIMITED

DECLARATION REGARDING TRANSACTION OF IMMOVABLE / MOVABLE PROPERTIES

Employee’s Name : Employee No. : Salary Grade :

Designation : Year of Declaration : Location of work :

Details Held in Date of Purchase From Sources Annual Remarks

Of whose Purchase Value whom of income if any
Property Purchase* Finance from the
Amount Property
Rs. Rs. Rs.
(a) (b) (c) (d) (e) (f) (g) (h)
1. Immovable Property

2. Movable Property

TOTAL Rs. Rs. Rs.

* State whether relative/ person having official dealing given full name and address.

I ________________________________hereby declare that I am the sole owner or joint owner as stated above of the above
mentioned immovable/movable properties.

Signature : Location :

Designation : Date of declaration :

[28]
 ATTACHMENT I

DETAILS OF AUTHORITY TO PLACE AN OFFICER UNDER SUSPENSION

SALARY GRADE AUTHORITY

F and below Functional General Manager /Executive Director/SBU Heads

‘G’, ‘H’ & ‘I’ All Functional Directors

[29]