Chapter

Universal Service
XI
Condition and Grant of
Fees, Honoraria
and Rewards
Rule Rule

The whole time of a Rewards to individuals for|

effecting economies in|
Government servant is at|
the disposal of the State. 270 factories 272
Rules regulating the grant|
of fees and honoraria 271

The Whole Time of a Government Servants is at

the Disposal of the State
270. Unless in any case, it is otherwise distinctly
provided, the whole time of a Government servant is at the
and he may be
disposal of the Government which pays him,
employed in any manner required by proper authority without
whether the
having a claim for additional remuneration, be
services requiredof him are such as would ordinarily
remunerated from general revenues or from a local fund

[ 214]
 [ 2151

ules Regulating the Grant of Fees and Honoraria/

271. (a) A Government servant, including all civilians
Defence Services Estimates, may be permitted by the
id from
eneral or special order of a competent authority, if it is
atisfied that this can be done without detriment to his official
responsibilities, to perform a specified service or
ties and
services for a private person or body or for a public
series of
a body administering a local fund, and to
hody including
if the service is material, a
receive as remuneration therefore,
non-recurring or a recurring fee. No Government
servant mayy

undertake such work without first obtaining the sanction of the

competent authority who will, unless the Government servant
is leave, certity that the work can be undertaken without
on
detriment to his official duties and responsibilities.
Note 1: Literary, cultural and artistic efforts aided by the knowledge

acquired in the of service under Govemment will require prior

course

such efforts
permission of the competent authority. The income derived from
is to be treated as "FEE
Note 2: When a Government Department undertakes work on behalf of a
non-Government organisation on payment of an agreed amount and assign
that work to Government servants working under them the payment made

the Department out of the amount taken from the non-Government

by
organisation to the Government servants concerned is to be treated as

Honorarium' and not fee.

(b) A Government servant, including all civilians paid
from Defence Services Estimates, may be granted an
honorarium from general revenues as remuneration for work

performed which is occasional in character and either so

Note for the Readers: Commencing from the 1st July 1976, the personnel
of the DAD will be governed by Fundamental Rules (i) in all matters in
which they are at present governed by the Civil Service Regulations, and
under Rule
i n matters of grant of fees and honoraria now governed
271 et. seg. Financial Regulations, Part I Volume 1.
Authority: Gl, MF Defernce Division OM No 17030/Accounts/An (PC) dated
15th June, 1976].
 [ 2161
laborious or of such special merit as to justify a special reward
This test of exceptional merit shall always strictly be applied
Except when special reasons, which should be recorded inv
in
writing exist for a departure from this provision, an
honorarium shall not be granted unless work has been
undertaken with the previous consent of the sanctioning
authority and its amount has been settled in advance
(c) For both fees and honoraria, the sanctioning authority
will record in writing that due regard has been paid to the
general principle enunciated in Rule 270 and will also record
the reasons which in his opinion justify the grant of the extra
remuneration.
The amount of an honorarium or fee shall be fixed with
due regard to the value of the service in return for which it is
given.
Temporary increases in work due to the holding of special
conferences under the auspices of a department or subordinate
authority or of inter-departmental committees are normal
incidents of Government service and form part of the legitimate
duties of Government servants. Those so employed have
therefore, no claim to extra remuneration.
Honorarium at the following rates may be paid to
Government servants for contribution of articles to
Government publications

6)For contribution of articles as a part|No honorarium.

of the normal duties and
responsibilities attached to
Government Servant's post.
(ii) For contribution of articles on sub-(a) No honorarium, if the article is
matters with which the
ject Govt.contributed by a Govt. servant to a
servant is officially concerned but|publication brought out by hisS
not falling within the scope of item|Ministry or its attachedand
(i1) (B) below, provided it is not a subordinate offices.
part of the normal duties and
re-
sponsibilities attached to his post.
 2171
(6) Honorarium at the rate of Rs.
10/ and in exceptional cases upto
Rs. 25/-per articlecontributed by a
Govt. servant to a publication
brought out by a Ministry or its
attached and subordinate office
other than the Ministry or its
attached and subordinate officesin
which he is working
(Gi) (A) For contribution of articles|Honorarium at the same rates and
on subject matters with which the|as payable to non-official
Govt. servant is not officially contributors.
concerned, and

(B) For contribution of a literary

artistic or scientific character to
any Govt. agency, provided itis
not a part of the normal duties and
responsibilities attached to his
post.
When in addition to his own duties, a Government servant
is required to perform the duties of another sanctioned post, he
should be deemed to be performing additional duties which are
not occasional in character, even though he may be asked to
perform such additional duties only for a short period.
Honorarium, under this rule will not, therefore, be admissible
to a Government servant who is required to perform the
additional duties of a sanctioned post.
(d) Any Government servant is eligible to receive without
specialpermission
() the premium or prize awarded for an essay, literary
piece or plan in public competition;
(1) any reward offered for the arrest of a criminal or a
deserter or for information or special service in
connection with the administration of justice
(iii) anyreward payable in accordance with the
regulation or rules framed
provisions of any act or

thereunder;
 2181
(iv) any reward sanctioned for services in connection with
the administration of the customs and excise laws
and

(v) any fees payable Government servant for duties

to a
which he is required to perform in his official capacity
under any special or local law or by order of
Government
(e) No Government servant may act as an arbitrator in any
case which is
likely to come before him in any shape by virtue of
any judicial or executive post which he may be holding, but a
Government servant called upon by court of law to act as a
a
commission to give evidence on technical matters
may comply
with the request provided that the case is not of such a nature
as
will be likely to come before him in the course of his official
duties, and he may accept such fees as are fixed by the Court.
When a Government servant is appointed to act as
an
arbitrator in a dispute
between the Department of the
Government of India in which he is working and a
private
party, he would not be granted any honorarium
If, however, he is appointed
arbitrator in a dispute
as an
between private party and a Department other than the one in
which he is working, he may undertake such work and receive
honorarium therefore on the following conditions
(a) before undertaking the work, the officer shall, as
required under this rule, obtain the prior approval ot
the competent authority, who shall decide whether,
consistently with his official duties, he may be
allowed to undertake the work and
and receive
honorarium for it;
(bthe honorarium may be paid to him at the rate of Rs.
30 per day or Rs. 15 per half day
subject to a maximum
of Rs. 500 per case. For this purpose, a day means
more than two hours continuous work on any day
and half day means work for two hours or less. He
shall record a certificate in writing indicating whether
 2191
he has done a
day's work or
half-day's work on a
particular day.
ote: 7he term "work" used in (b) above means only the time spent on the
Not
hearing of the case and does not include that spent on reading of the case
the case.
papers or studying
In either of the above, two cases, when any costs on
account of arbitration are awarded against a private party, the
entire amount on recovery by the Department concerned, shall
be credited to Govermment and shall not be paid to the
arbitrator.
A Government servant may, with the prior permission of
the competent authority as required under this rule, accept the
appointment as an arbitrator in a dispute between private
parties. At the time of giving such permission, the competent
authority shall decide whether consistently with his official
duties, he may undertake the arbitration work and also
whether he may accept any fee for it from the parties to the
dispute. This fee shall be subject to the provisions of this rule.
() Unless the Government of India by special order
otherwise directs, one third of any fee, including a fee received
by a Government servant for giving expert evidence before a
cOurt of law, in excess of Rs. 400 or, if a recurring fee, of Rs. 250
in one financial year, paid to a Government servant tor work
undertaken by him fora private or public body or for a private
if
person shall be credited to General Revenues, In other words,
fee exceeds Rs. 400 non-recurring, or Rs. 250 in a financial
any,
year recurring, one-third of the total amount payable will be
credited to general revenues, provided that the amount

etained by the Government servant concerned will not, merely

400 if
OWing to the operation of this rule be reduced below Rs.
- recurring or Rs. 250 a year if recurring. Non-recurring and

should not
recurring fees should be dealt with separately and
to General
Eadded, for the purpose of crediting one-third
In the case of the former the limit of
evenues under this rule. each
NS, 400 prescribed in this rule should be applied in
 2201
individual case, and in the case of the latter, the limit should .
applied with reference to the total recurring fees for th
he
financial year.
This rule does not apply to fees received by Government
servants from a regimental fund or from a University or other
examining body in return for their services as examiners, to fees
of any kind received by medical and veterinary officers
employed in Defence Services or to payments for services of a
social nature rendered toa club or similar organisation of the
Government Servant's fellow employees as distinct from
services rendered on a commercial basis to a private individual
or corporation.
This rule does not also apply to fees received by the
writing of reports or studies on selected subjects for
for
international bodies like the United Nations Organisation,
UNESCO, etc. and literary contributions to both Indian and
Foreign magazines if this is done unaided by knowledge
acquired in the course of Government service.
This rule should not, however, be applied to the income
derived by a Government servant from the sale or royalties of a
book written by him with the aid of knowledge acquired by him
through his literary, cultural and artistic efforts, during the
course of his service, provided the book is not a mere
compilation of Government Rules, Regulations or Procedures,
but reveals author's scholarly
study of the subject. This
relaxation is not automatic but will be made under Government
orders in each case. For, this
purpose a certificate to the above
effect will be furnished by the
competent authority while
recommending relaxation. This rule will not also apply to the
income derived by a Government servant from exploitation of a
patent for an invention taken out by him with the permission of
the competent authority.
Fees in respect of Government servants attending
meetings or for doing other work in connection with the affairs
of statutory organisations corporate bodies, industrial ana
 2211
ommercial undertakings (not departmentally run) will be
ecoverable only if these are not wholly owned by the Central
recoverabl

Covernment but in which Central Government funds are

invested or which are financed partly by such funds. The case of
Semi-Government/Non-Government Institutions receiving
grants from the Central Government will be examined on
merits and Government orders obtained. No fees or other
Tremuneration should be directly accepted by Government
servants unless they are specially permitted to receive such fees
under this rule.
Payments received by a Government servant in the form
of travelling, conveyance, daily and subsistence allowances
from a source other than the Consolidated Fund of India or the
Consolidated Fund of a State, are to be treated as fee and are
normally subject to deduction under this rule. The competent
authority concerned mentioned in clause G) below, may exempt
the above all allowances from the purview of this rule if it is
satisfied that the amounts received by the Government servant
concerned are nota source of profit to him.
The authority competent to sanction the acceptance by a
Government servant of any fee whether recurring or
matter to the audit offices
non-recurring shall report the
concerned and realise the Government share, if any.
fee
(g) Subject to the provisions of clause (f) above, whena
is paid for work done by a Government servant during such
time as would otherwise be spent in the performance of official
duties, the fee shall be credited to general revenues, provided
which shall be
that competent authority for special reasons,
a
be paid to
recorded, may direct that whole or any part of it may
the Government servant.
educational service
When Government servant of an
(h a
financial
1S permitted to receive fees for private tuition, the
limits of the powers of sanction accorded to a competent
ot fee
authority will be considered to apply to the total amount
 222 1
to be accepted by such Government servant during any
ny
particular scholastic term or vacation.
i)G) The authorities specified below will be viewed as
competent authorities for the purpose of exercising powers
under this rule excluding those employed in the Defence
Accounts Department, for whom the Controller General of
Defence Accounts is the competent authority. These authorities
will have the powers to grant honorarium upto a maximum
amount of Rs. 2,500/- to Government servants under their
control and to grant to them permission to undertake work
from other Departments and accept for it honorarium up to
maximum amount of Rs. 2,500/-.Cases in which the amount of
honorarium exceeds Rs. 2,500/- will be referred to the Ministryv
of Defence. The Ministry of Defence will be competent to
sanction honorarium up to a maximum amount of Rs. 5,000/-
Cases in which the amount of honorarium exceeds Rs. 5000/
will require the approval of Ministry of Finance. The Ministry
of Defence will, however, have full powers to grant permission
to undertake work from other Departments and to accept
honorarium therefore irrespective of the amount of honorarium
involved.
(ii) The "Competent authorities" mentioned below will
also have the powers to sanction the undertaking of work for
private bodies and to accept fee therefore, if the amount of the
fee to be paid does not exceed Rs. 1,000/- in each case. Cases
where the amount of fee exceeds Rs. 1,000/- will require
sanction of the Ministry of Defence.
2.
In the case of recurring honoraria the limits of Rs. 2,500/-
and Rs. 5.000/- apply to the total of the recurring payments
made to an individual in a financial year. In the case of
recurring fees the limit of Rs 1,000/- applies to total of such
payments made in any case in a financial year.
1 Amounts raised from Rs. 500 to Rs. 2,500 and from Rs. 1,000 to Rs. 5,000
vide CS No 11/1V/93.
2 Para 1 below Rule 271 recasted vide
appended (G) (ii) s No
11/1V/93.
 2231
Authoritles competent to exercise powers under
the provision of Rule 271 F.R. Part I. Volume
(a) For Service Personnel
Competent Authority Personnel Coveredd
COAS/VCOAS |All Service Personnel serving in the
COAS/VCOAS Secretariat.
(ii) GOC-in-C Corps/Div/Area/ All Service Personnel under their
Independent Sub-Area control
Commanders.
(ii) DGAFMS All AMCPersonnel whereverserving.
(iv) Director NCC. All Service Personnel serving in the
Directorate and in lower formations
under him
(v DGDE All Service Personnel serving in the
Directorate and in lower formations
under him.
DCOAS, AG, QMG, MGO,|Service Personnel in the respective
(vi) E-in-C, MS. Branches at IHQ of MoD (Army).
(vii) Commandants Category 'A Es-All Service Personnel serving under
tablishments (ie, Defence Service |their control.
Staff College, National Defence
Academy, Indian Military Acad-
emy), National Defence College.
(vii) Director Institute of Defence|All Service Personnel serving under
Management, Secunderabad. |his control.
(ix) Commandant, College of All Service Personnel serving under
Combat, Mhow him.
All Service Personnel in the
) D.G.O.F.
Directorate General as well as in the
lower formation under DGOF.
well a_
(4)Director General of Quality AllService Personnel at HQ as them.
under
|ASsurance/Scientific Adviser,in lower establishments
Officer Incharge All Service Personnel at IHQ of MoD
(xi) Air
Administration at IHQ of|(Air) and Air Force Units/formations
MoD (Air) directly under the Administrative
control of IHQ of MoD (Air).
(xiii) AOC-in-C Command All Service Personnel serving in
Commands and the units/formations
under their Administrativecontrol.
 224 1

(xiv) C.NS All Service Personnel serving in IHOl

of MoD (Navy) and the Establishments
which are not controlled by the
authorities mentioned in (a) (xv)
below.
(v)FOC-in-C/FOC/Fleet/FOC All Service Personnel under their
Icontrol.
Area
) For Civilian Employees
Competent Authority Personnel Covered
All civilians serving under their
1 GOC-in-C
Corps/Div/Area/Indep. control
Sub-Area Commanders.

ii) D.G.O.F. All civilians in the Directorate General

as well as in the lower formations
under D.G.O.F.
(iil) Director General of Quality All civilians at HQ [other than those
Assurance/Scientific Adviser. controlled by CAO vide item (vii)
below as well as in lower
establishments under them.}
All civilians serving at HQ [other than|
iv) D.G.A.F.M.S.
| those controlled by CAO, vide item
(vii) below in the lower formations
under his control.]
() Director N.C.C. All civilians serving in the lower
formations under him.
(vi) DGDDE All civilians serving in the lower|
formations under him.
(vi) CAO, Min. of Defence G) All civilians belonging to both
AFHQ and Non-AFHQ cadres serving|
in AFHQ andInter-Services
Organisations, (i) All civilians
employees (Gazetted & non-Gazetted)
rving in IHQ of MoD (Navy).
(vii) (a) Commandants Category| All civilians serving under their
'A Establishments i.e,control.
Defence Services Staff College,
National Defence Academy,
Indian Military Academy
National Defence College.
6) Commandant, College of| All civilians serving under him.
Combat Mhow
 [ 2251
le) Director, Institute of| All civilians serving under his control.
)
Defence Management,
Secunderabad.
Air Officer InchargeAll civilians personnel serving in
(ix) Administration at IHQ of|Units/Formations under the
MoD (Air). Administrative control of IHQ of MoD
(Air)
AOC-in-C Command. All civilian personnel serving in
Command and the Units/Formations
under their Administrative control
(xi) C.N.S All civilian employees serving in
establishment not directly under the
control of the authorities mentioned in
b)xi) below.
(xii) FOC-in-C West/FOC-in-C|All civilian employees serving under
East/FOC-in-C South. their Administrativecontrol.
Note 1: The Scientific Adviser to the Ministry of Defence is the competent
authority to grant permission to scientists under his administrative control
for setting papers, accepting university examinership etc. He will not,
however, exercise the powers under clauses () and (g) above.
Note 2: The Director General of Tnspection, will exercise the power of the
competent authority in addition to the powers vested in him under clause )
above to permit Government servants appointed directly by the Govt. of
India, employed in Defence Inspection Establishments to accept fees from
University or other examining bodies in return for their services as
examiners/paper-setters.
All other cases not covered by the above paras shall be
referred for the orders of the Government of India.

Rewards to Individuals for Effecting

Economies in Factories
272. The Director General of Ordnance Factories may,
within the annual grant of Rs. 2,000 placed at his disposal for
the purpose, sanction reward to employees for effecting
economies in manufacture in ordnance and clothing factories.

273-275. Blank.