HAL

CONDUCT, DISCIPLINE
AND
APPEAL RULES - 1984
 HAL
CONDUCT, DISCIPLINE
AND
APPEAL RULES - 1984
(Updated upto 30th Sept. 2013)
 FOREWORD

The Theme for Vigilance Awareness Week

2013 is Promoting Good Governance - Positive
Contribution of Vigilance". Greater awareness of
Company rules and procedures is imperative to
good governance. Keeping this theme in mind, a
handy booklet has been compiled on HAL Conduct,
Discipline and Appeal (CDA) Rules, 1984. This
booklet has been updated with amendments to the
rules upto 30th Sept. 2013, including provisions of
DOP 2013. These rules apply to all officers of the
Company in Grade-I and above including officers
on contract service. This compilation does not
include code of business conduct and ethics which is
applicable to senior officers in Grade IX, X, Whole
Time Directors of the Company including Chairman,
all part-time directors and independent directors
of the Company. Copy of code of business conduct
and ethics is available for download at www.hal-
india.com. Code of conduct for workmen is
governed by the Standing Orders.

Prime objective of this booklet is to sensitise the

officers on ethical conduct and to enhance greater
compliance of rules and procedures of the
Company, which will go a long way in instilling
confidence while discharging their duties and
responsibilities.

TEAM VIGILANCE
HINDUSTAN AERONAUTICS LTD.
 Index

Sl. Page
No. Subject No.
1. HAL Conduct, Discipline and Appeal 1
Rules - 1984 (As amended up to 30th
Sep. 2013)
2. Rules - [Annexure-I] 3
3. Code of Conduct - [Schedule I (Rule 21
4 of Annexure-I refers)]
4. Procedure for awarding punishments - 45
[Schedule II (Rule 11 (i) of Annexure
I- refers)]
5. Competent Authorities - To impose 55
penalties - To decide on Appeals -
[Appendix - I (Rule -10 of Annexure I
refers)]
6. Property returns - [Statement showing 57
details of immovable property- (Form
No.- 1 -Appendix-II)]
7. Property returns - [Statement of 57
assets & liabilities - Form No. - 2 -
Appendix-III]
8. Information to be furnished to 57
Competent Authority by employees
while seeking approval / reporting
transactions in respect of movable /
immovable properties - [Appendix-IV]
9. A proforma of the letter to be issued 57
while forwarding copy of the Enquiry
Report is at Appendix-V
 HAL CONDUCT, DISCIPLINE AND APPEAL
RULES

Conduct Rules and Disciplinary Action Rules,

applicable to the employees in the Company, not
covered by the Industrial Employment (Standing
Orders) Act, were introduced in the Company
during the year 1967. These Rules, as amended
from time to time, continued in operation till the
year 1984.
(PC No.528 dt. 23.8.84)

2. Based on the Model Conduct, Discipline and

Appeal Rules circulated by the Central Vigilance
Commission for adoption in the Public Sector
Undertakings, the 'Conduct Rules' and 'Disciplinary
Action Rules' were amalgamated and the HAL
Conduct, Discipline and Appeal Rules, 1984 as
given in Annexure-I, incorporating the provisions
of the Model Conduct, Discipline and Appeal Rules
were introduced in the Company effective from 1st
September, 1984. Disciplinary proceedings, if any,
pending at the commencement of these rules are to
be continued and disposed of in accordance with
the provisions of these rules, and any misconduct,
etc, committed prior to issue of these rules which
was a misconduct under the Conduct Rules 1967
and Disciplinary Action Rules 1967 shall be
deemed to be misconduct under these rules.

1
3. These rules apply to all officers of the Company
in Grade-I and above including officers on contract
service and Government employees on deputation,
other than those appointed by the President of
India and Armed Services Personnel. However, the
Conduct Rules, 1967 and Disciplinary Action Rules
1967 contained in Annexure-II & III will continue to
apply to workmen of the Corporate Office, Offices
of Managing Director, MiG Complex and
Accessories Complex, Liaison Office, New Delhi
and the HAL Management Academy (HMA) and
those who are not covered by the Industrial
Employment (Standing Orders) Act, 1946.

2
 ANNEXURE-I
HAL CONDUCT, DISCIPLINE AND APPEAL RULES 1984
(As amended from time to time)
RULE 1
Short title and commencement :
i) These rules may be called HAL Conduct,
Discipline and Appeal Rules, 1984.
ii) These rules are effective from 1st September,
1984.
RULE 2
Application :
These rules shall apply to all officers of the
Company in Grade-I and above including officers
on contract service and Government officers on
deputation, other than those appointed by the
President of India and Armed Services Personnel.
RULE 3
Definitions:
In these rules, unless the context otherwise
requires:
a) Company means the Hindustan Aeronautics
Limited wherever situated and includes all its
Divisions/Factories, Outstation bases, Service
Centres, Branches and Offices.
b)Officer means any person employed in
Grade-I and above in the Company and includes
personnel employed on contract and
Government Officers on deputation other than
those Officers who are appointed by the
president of India and Armed Forces personnel.
c) Member of the Family in relation to an
Officer includes wife (husband in the case of a
female officer), sons or daughters, step-sons or

3
step-daughters (whether they are residing with
the officer or not) provided they are wholly
dependent upon the officer. The spouse need not
be wholly dependent on the officer for purposes
of these rules.
(HAL/P&A/19(2)/87/795 dt 4/3/97)
d) (i) Competent Authority means and includes
Chairman/ Managing Directors / Functional
Directors/Executive Directors/ General
Managers or any other officer empowered by the
management to exercise powers under the
provisions of these Rules;
Competent Authority for the purpose of Code of
Conduct (Schedule-I) shall be as under :
For Officers in Grade-I to IV Executive
Director/General Manager/
Divisional Head
For Officers in Gr-V to VIII MDs/FDs
For Officers in Gr IX & above Chairman
(ii) Appointing Authority means the Board of
Directors, Chairman/Managing
Directors/Executive Directors/ General
Managers or other officers to whom the powers
of appointment have been specially delegated;
(iii) Disciplinary Authority means an officer of
the Company empowered to take disciplinary
action under these Rules;
(iv) Appellate Authority means an officer of the
Company empowered to consider appeals and
vested with power to confirm, set aside, reduce or
enhance the punishment appealed against;

4
 e) Management means Chairman, Managing
Directors, Directors, Executive Directors, General
Managers, Additional General Managers,
Deputy General Managers or those in equivalent
posts and includes such other officers who may be
authorized to act on his/their behalf or on behalf
of the Company from time to time.
f)Appropriate Government means Central
Government (State Authorities have no
jurisdiction to decide in adjudicate upon the
disputes).
(HAL/P&A/21(1)-1/97 dated 4.2.98)

RULE 4
Code of Conduct :
i) Every officer of the Company 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 Company or any act which may
b r i n g d i s r e p u t e t o t h e C o m p a ny.
Ii) Every officer of the Company 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.
iii) Rules that are to be followed by officers in
respect of specific matters/ transactions such as
sale/purchase of property, gifts, contacts with
foreign national etc., are stipulated in Schedule-I.
Breach of any of these rules would be deemed as
misconduct and the officers who violate these
provisions are liable for disciplinary action in
accordance with the provisions contained in these
rules.

5
RULE 5
Further, the following acts would be deemed to
be misconduct and officer committing such acts
would be liable to disciplinary action :
i)Wilful insubordination or disobedience whether or
not in combination with others of any lawful and
reasonable order of his superior;
ii)Participation in strikes, gheraos and other
agitational activities such as picketing or
participating in demonstrations within the factory
premises which involves incitement to an offence or
abetting, inciting, instigating or acting in
furtherance thereof;
iii) Theft, fraud or dishonesty in connection with the
business or property of the Company or of the
property entrusted to the Company or of another
employee within the premises of the Company;
iv) Leaving duty station without previous
permission;
v)Absence without leave or over-stay the
sanctioned leave without sufficient grounds or
proper or satisfactory explanation;
vi) Habitual indebtedness and/or insolvency;
vii)Wilful damage to property of the Company;
viii)Interference with any safety devices installed
in or about the establishment;
ix)Holding meetings on the premises of the
establishment without previous permission of the
Competent Authority or attending meetings other
than those convened by the Management within the
factory premises;
x)Distribution and/or exhibition of any
newspapers, hand bills, pamphlets or posters
without the previous sanction of the Competent
Authority;
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xi)Furnishing at the time of employment or during
the course of employment wrong or incomplete
information or suppressing any information
regarding age, qualification, previous service or
experience, conviction in a Court of law, dismissal,
removal or compulsory retirement by a previous
employer;
xii)Making representations to persons or bodies
outside the Company, whether official or otherwise
on matters connected with the affairs of the
Company or in respect of personal grievances
against the Management;
xiii)Making representations or sending grievance
petitions to Government, Members of the Board or
the Senior Management except through proper
channels; making representations to outsiders or
other organisations on matters pertaining to service
of the Company;
xiv)Accepting or offering any illegal gratification
or indulging in any corrupt practice;
xv)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;
xvi)Acting in a manner prejudicial to the interests of
the Company;
xvii)Neglect of work or habitual negligence in the
performance of duty including malingering or
slowing down of work;
xviii)Drunkenness or riotous or disorderly or
indecent behaviour in the premises of the Company
or outside such premises where such behaviour may
bring disrepute to the Company;
xix)Collection of any money within premises of the
Company without permission of the Competent
Authority;
xx)Commission of any act which amounts to a
criminal offence involving moral turpitude;
7
xxi)Purchasing properties, machinery, stores etc.,
from or selling properties, machinery, stores etc., to
the Company without express permission in writing
from the Competent Authority;
xxii)Commission of any act subversive of discipline
or of good behavior;
xxiii)Participation in go-slow or work-to-rule
agitations or inciting others to resort to go-slow or
stop work or proceed enmasse on casual leave;
xxiv)Canvassing for a Union or an Association or
party Membership within the factory premises;
xxv)Abetment of or attempt abetment of any act
which amounts to misconduct;
xxvi)Deliberately making false complaints against
employees; supervisors knowing them to be false
and writing of anonymous or pseudonymous letters
criticising employees/superiors of the Company
and making false reports against them;
xxvii)Refusal to accept or to take notice of any
order or charge sheet or any other communication
served either in person or in due course by post, or
by notification on the Company's Notice boards;
xxviii)Violation of the terms and conditions of
allotment of Company's quarters or use of
Company's transport;
xxix)Indulging in political activities within the
factory premises.
xxx)Falsification / forging of the records and / or
defalcation.
xxxi)Spreading false rumours or giving false
information which may bring disrepute to the
Company or its employees or spreading panic
among the employees; and
xxxii)Falsifying or refusing to give testimony in
investigations being conducted by Management in
connection with any accident, misconduct or any
other matter.
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xxxiii)Indulging in, or committing any act of sexual
harassment with women employees at workplaces. For this
purpose, sexual harassment includes such unwelcome
sexually determined behaviour (whether directly or by
implication) as:
a. Physical contact and advances;
b. A demand or request for sexual favours;
c. Sexually colored remarks;
d. Showing pornography;
e. Any other unwelcome physical, verbal or non-
verbal conduct of sexual nature.

RULE -6
Punishments:
The following punishments may for good and
sufficient reasons be imposed on officers by the
Competent Authorities empowered to impose such
punishments under these rules:
(i) Minor Penalties :
(a)Censure;
(b)Recovery from an officer's pay of the whole
or part of any loss caused to the Company on
account of his negligence, default or breach of
any regulations or orders of the Company;
(c)Postponement of increment(s) of pay, without
cumulative effect, for period to be specified by
the Disciplinary Authority;
(d)Reduction to a lower stage in the same scale
of pay, without cumulative effect, for periods
to be specified by the Disciplinary Authority,
and not adversely affecting his terminal
benefits;
(ii) Major Penalties :
(e)Postponement of increment(s) of pay, with
cumulative effect, with number of increments to
be postponed to be specified by the
Disciplinary Authority;
9
 (f)Reduction to a lower stage in the same scale
of pay, with cumulative effect, with number of
stages to be specified by the Disciplinary
Authority;
(g)Reduction to a lower Scale of pay, Grade or
Post;
(h)Compulsory Retirement;
(i)Removal from service which shall not be a
disqualification for future employment under
the Government or a Corporation/Company
owned or controlled by the Govt.;
(j)Dismissal from service which shall ordinarily
be a disqualification for future employment
under the Government or a
Corporation/Company owned or controlled
by the Government;
(k)deleted *
Forfeiture of Gratuity would continue to be
resorted to in cases of termination of services,
as provided under Section 4 (6) of the Payment
of Gratuity Act, 1972.
( * HAL/P&A/19(2)/2012 dated 19.3.2012)
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 a motive or
reward for doing or forbearing to do any official
act is established, the penalty mentioned in Clause
(i) or (j) above shall be imposed.
Provided further that in any exceptional case
and for special reasons recorded in writing any
other penalty may be imposed.
(HAL/P&A/19(2)-Vol.V-PF/2005/79, dated
19.2.2005)
10
Note : Whenever the Disciplinary Authority comes
to the conclusion that the punishment of reduction to
a lower stage in the same scale of pay or reduction
to Lower scale of pay is warranted for a proven
misconduct and passes order accordingly, the pay
which the concerned employee would draw on such
reduction in the same scale of pay or in lower scale
of pay should be invariably indicated in the order
communicating the punishment to the concerned
employee so that the orders are clear and
unambiguous.
(HAL/P&A/19(2)/Vol-5, dated 1.7.96)
Explanation:
The following shall not amount to penalty within
the meaning of this rule:
! non-promotion of an officer whether in a
substantive or officiating capacity after
consideration of his case to a grade or post for
promotion to which he is eligible;
! reversion of an officer officiating in a higher
grade or post to a lower grade or post on the
ground that he is considered to be unsuitable for
suc h higher grade or post or on any
administrative ground unconnected with his conduct;
! reversion of an officer appointed on probation
to any grade or post to his previous grade or post
or during or at the end of the period of probation in
accordance with the terms of his appointment or the
rules and orders governing such probation;
! termination of the services:
i) of an officer appointed on probation during
or at the end of the period of his probation in
accordance with the terms of his appointment
or the rules and orders governing such
probation; or
11
 ii) of a temporary officer in accordance with
the provisions of his appointment; or
iii) of an officer employed under a contract in
accordance with the terms of such contract; or
iv)of an officer as a result of
retrenchment/premature retirement.
RULE - 7
Penal Salary Deduction:
If 10 or more officers acting in concert absent
themselves from their place of work or stop work
without reasonable cause, the management shall
have the right to deduct from their salary up to 8
times the proportionate salary for the period of
their absence or wilful idleness as the case may be,
in addition to taking against them such disciplinary
action as the management may deem fit.
RULE 8
Suspension pending enquiry:
(i) The authority competent to take disciplinary
action against an officer or the next higher
authority or the concerned appointing authority, as
the case may be, may by an order in writing, place
an officer charged with misconduct under
suspension pending enquiry in the following
circumstances:-
(a)Where a disciplinary proceeding against
him is contemplated or is pending; or
(b)Where a case against him in respect of any
criminal offence is under investigation or trial.
(ii) An officer, who is detained in custody on a
criminal charge for a period exceeding 48 hours
can be suspended with effect from the date of
detention by an order of the Competent Authority
or next higher authority or appointing authority
and shall remain under suspension until further
orders;
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(iii) Where an order of compulsory retirement or
dismissal is set aside and/or the case is remitted for
further proceedings on the basis of appeals
preferred by an officer, the officer shall be
deemed to have been under suspension from the
date of the order revoking compulsory retirement
or dismissal until further orders;
(iv) The order of suspension may be revoked by the
authority which passed that order; or its next higher
authority or the concerned appointing authority as
the case may be.

RULE 9
Subsistence Allowance:
(i) An officer under suspension shall be entitled to
draw subsistence allowance equal to half of the
total emoluments last drawn by him provided the
officer has not engaged in any other employment,
business, profession or vocation. Subsistence
allowance at this rate will be paid for the first 6
months of suspension. Thereafter if the enquiry gets
prolonged and the officer continues to be under
suspension for reasons attributable to the officer,
the subsistence allowance will be reduced to of
the emoluments (Basic Pay + Dearness Allowance +
House Rent Allowance + City Compensatory
Allowance) and, if on the other hand the delay is for
reasons beyond the control of the officer,
subsistence allowance will be increased to of the
emoluments.
(ii) When an officer who has been placed under
suspension under Rule-8 is reinstated, the period of
suspension will be treated in the following manner:-

13
 (a)If he is fully exonerated, the period of
suspension will be treated as duty and he will
be paid the full pay and allowances to which
he was entitled as if he was on duty less the
subsistence allowance already paid;
(b)In other cases, he will receive such portion
of the pay and allowances as the Competent
Authority decides and the period spent on
suspension treated as on duty only to such an
extent and for such purposes as the
Competent Authority decides provided that
if the officer so desires, the Competent
Authority may permit the period of absence
from duty being converted into leave due
and admissible to the officer;
(iii) Subsistence Allowance will be admissible to
an officer who has been taken into custody also,
with effect from the date of suspension, irrespective
of the fact whether bail has been granted to him or
not.
(HAL/P&A/19(2)/2005/64, dated 7.2.2005)
RULE 10
Powers to award punishments:
The Competent Authorities empowered to
impose penalties and the authorities to whom the
Appeals can be made by Officers concerned are
indicated in Appendix-I.

RULE 11
Procedure for awarding punishments:
(i) No punishment under Rule-6 except censure
shall be awarded to an officer unless he has been
informed in writing of the alleged misconduct and
has been given adequate opportunity to explain his
case in accordance with the procedure laid down
14
in this behalf in Schedule-II. However, while
awarding punishment of censure, the Officer
concerned should be given adequate opportunity
to explain his case.
(ii) Notwithstanding anything contained in these
rules, it shall not be incumbent upon the authority
competent to impose the punishments to follow the
procedure herein prescribed before imposing any
of the penalties enumerated in Rule-6 on an officer
when such an officer has been convicted by any
court or tribunal on a criminal charge involving
moral turpitude.
(iii) When an increment is withheld under Rule-6,
the order shall indicate the period for which the
increment has to be withheld and whether or not it
shall have the effect of postponing subsequent
increments.

RULE 12 (a)
Continuance of disciplinary
proceedings/enquiries after retirement from
service.
The Officer against whom disciplinary proceedings
/ CBI enquiries have been initiated or
contemplated will cease to be in service on the date
of superannuation but the disciplinary proceedings
will continue as if he was in service until the
proceedings are concluded and final order is
passed in respect thereof, including imposition of
any of the penalties prescribed in the Rules. For this
limited and specific purpose, the concerned Officer
shall be deemed to have continued in employment
of the Company. He will not receive any Pay and/or

15
Allowance after the date of superannuation. He will
also not be entitled for the payment of retirement
benefits (viz: Gratuity and Vacation Leave
Encashment), till the proceedings are completed
and final order is passed thereon.
(HAL /P&A/19(2)/10(10th August 2010)

RULE 12 (b)
Special procedure in certain cases :
Notwithstanding anything contained in Rules-
10 and 11, the disciplinary authority may impose
any of the penalties specified in Rule-6 without
enquiry under any one of the following
circumstances:
(i) The officer has been convicted on a criminal
charge or on the strength of facts or conclusions
arrived at by judicial trial; or
(ii) Where the disciplinary authority has specified
for reasons to be recorded by it in writing that it is
not reasonably practical to hold an enquiry in the
manner provided in this rules; or
(iii) Where the Management has specified that in
the interest of the security of the company, it is not
expedient to hold any enquiry in the manner
provided in this rules.

RULE 13
Procedure for imposing punishment on Govt.
employees on deputation:
Except in the case of officers on deputation
who are appointed by the President of India and
Armed Forces Personnel, Chairman has powers to
initiate disciplinary action and also place officers
under suspension. Whenever an officer on
16
Deputation is placed under suspension, the parent
department of the officer should forthwith be
informed explaining the circumstances leading to
the order of suspension or commencement of
disciplinary proceedings, as the case may be.
2.In the light of the findings of the disciplinary
proceedings conducted against the
Government employee:
i) If the Chairman is of the opinion that any of
the penalties specified in (a) to (d) of Rule-6
should be imposed on the Government
employees, he may after consultation with the
parent department make such orders on the
case as he considers necessary; provided that
in the event of a difference of opinion between
the parent department and the company, the
Government employee shall be reverted to his
parent department.
ii)If the Chairman is of the opinion that any of
the penalties specified in (e) to (j) of Rule-6
should be imposed of the Govt. Employees he
shall replace his service at the disposal of the
parent department and transmit to it the
proceedings of the enquiry.

RULE 14
Appeals:
An aggrieved officer may appeal against an order
imposing upon him any of the punishments specified
in the rule-6 to the Appellate Authority as indicated
in the Appendix-I within 45 days of the imposition
of punishment with copy to the Competent Authority.
2. The appeal shall contain all material
statements/ arguments on which the appellant
17
relies and shall not contain any disrespectful or
improper language.
3. The Competent Authority on receipt of a copy
of appeal will forward the same with his comments
thereon together with relevant record to Appellate
Authority within 15 days.

RULE - 15
Consideration of appeal:
In the case of an appeal against an order
imposing any of the penalties specified in Rule-6,
the Appellate Authority shall consider:-
a)Whether the procedure laid down in these rules
has been complied with and if not whether such non-
compliance has resulted in the failure of justice;
b)Whether the findings of the Enquiry Committee
are based on the evidence on record; and
c)Whether the penalty or the enhanced penalty
imposed is adequate, inadequate and pass orders:
i)confirming, enhancing, reducing, or setting
aside the penalty; or
Ii)in case where penalty is to be enhanced, the
procedure to be followed; remitting the case to the
Competent Authority which imposed or enhanced
the penalty or to any other Authority with such
direction as it may deem fit in the circumstances of
the case.

RULE 16
Review of Punishments:
Not withstanding anything contained in these
rules; the Appellate Authority as specified in the
Appendix-I of the rules, suo-motto may call for the
records of the case within six months of the date of
18
the final order and after reviewing the case pass
such orders thereon as it may deem fit. Provided
that, if the enhanced penalty, which the Appellate
Authority proposes to impose, is a major penalty
specified in clause (ii) of Rule-6 and an enquiry as
provided under Item-III of Schedule-II has not
already been held in the case, the Appellate
Authority shall direct that such an enquiry be held in
accordance with the provisions of said item and
thereafter consider the records of the enquiry and
pass such order as it may deem proper. If the
Appellate Authority decided to enhance the
punishment but an enquiry has already been held in
accordance with the provisions of the said Item-III,
the Appellate Authority shall give show cause notice
to the officers as to why the enhanced penalty
should not be imposed upon him. The Appellate
Authority shall pass final order after taking into
account the representation, if any, submitted by the
officer.
(PC No. 576, dated 26.12.1987)

RULE 17
Sufficiency of service of notice etc.
Any notice or charge sheet to be delivered to
the officer may be served personally or by
registered post addressed to the officer at his last,
present and permanent address furnished by him. If
the whereabouts of the officer are not known or if
he avoids or refuses the notice of charge sheet or
such other order issued under these rules, such
notice/order may be pasted on the Company's
Notice Board and such pasting shall constitute
adequate service or notice of charge-sheet or
order as the case may be.
19
RULE 18
Removal of doubts:
Where a doubt arises as to the interpretation
of any of these rules, the matter shall be referred to
the Board for final decision.

RULE 19
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.

20
 SCHEDULE I
(Rule 4 of Annexure-I refers)

CODE OF CONDUCT

I. Movable, Immovable and Valuable property :

No officer of the Company shall except with
the previous knowledge of the Competent Authority
acquire or dispose of any immovable property by
lease, mortgage, purchase, sale, gift or otherwise
either in his own name or any member of his family.

All Officers are required to intimate/obtain

prior approval, before property transactions are
made, as prescribed in the Rules.

Note:
Whenever an officer starts construction of a
building/ residential accommodation on a land or
plot of land owned by him, he should report the fact
of such construction to the Competent Authority,
indicating details of plinth area of the
house/residential accommodation as per the
building plan approved by appropriate Authorities
like Local Bodies, Town Municipalities, City
Corporation, City Development authorities etc.
Further, within one month of the date of completion
of the construction of the house/residential
accommodation, Competent Authority should be
informed about the same indicating the total cost of
construction and the source of fund(s) utilized for the
said purpose.
(HAL/P&A/19(2)/90/Vol.V dated 5.8.1997)

21
2. No officer of the Company shall except with
the previous sanction of the Competent Authority
enter into any transaction concerning any
immovable or movable property with a person or a
firm having official dealing with the officer or his
subordinate.
3. Every officer of the Company shall report to
the Competent Authority in the prescribed form at
Appendix-IV, every transaction concerning
movable property owned or held by him in his own
name or in the name of a member of his family,
within one month of such transactions, if the value of
such property exceeds two (2) months Basic Pay of
the Officer (at the time of transaction). The report
shall be submitted within one month of the date of
transaction.
Provided that the previous sanction of the
Competent Authority shall be obtained by the
Officer if any transaction is with a person having
official dealing with him
(HAL/P&A/19(2)/11 dated 14.11.2011)

SUBMISSION OF PROPERTY RETURNS:

Officers will submit their Property Returns, on first
appointment and every year on a calendar year
basis, in the Formats at Appendix-II, III and IV. The
Annual Returns in respect of calendar year will be
submitted as on 1st January of the subsequent year.
The Return will be submitted by each officer latest
by 7th January.
Note :
(i)Transactions concerning movable property
acquired or gifted to the spouse at the time of

22
 marriage by her parents/relatives are not
required to be reported.
(HAL/P&A/19(2)/97 DT. 28/5/97
(ii) If an Officer has reported about payment
of LIC Premium/premia, NSCs if its value
exceeds two (2) months Basic Pay of the Officer
(at the time of transaction) in the property
returns of the relevant years, no further
reporting is necessary when he receives the
amount of matured policies/ certificates. This
clarification will also apply to shares, securities
and debentures; however, this will not apply to
moneys held in accounts on fixed deposits in a
Bank or deposits in Savings Bank Account made
out of his salary on accumulated savings.
(iii)Movable property inherited at the time of
death of officer's parents/relatives should be
reported if its value exceeds two (2) months
Basic Pay of the Officer (at the time of
transaction).
(HAL/P&A/19(2)/97 DT. 25/6/97
4. Every officer shall on first appointment in the
Company submit a return of assets and liabilities in
the form as at Appendix-II, III and IV giving the
particulars regarding:-
a) the immovable property inherited by him or
owned or acquired by him of held by him on lease
or mortgage either in his own name or in the name
of any member of his family or in that 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 for held by him if the
value of such property exceeds the limits specified
at 3 above;
23
d) debts and other liabilities incurred by him
directly or indirectly;
e) Every officer shall submit a return, every
calendar year, in respect of immovable properties
inherited / owned / acquired, in the Forms at
Appendix-II to IV. The return must be filled and
submitted as on 1st January of each year, for the
preceding calendar year. A certificate regarding
submission of the Return will be indicated in the
Performance Appraisal Report of the concerned
year.
(HAL/P&A/19(2)/2005/64 DT. 7/2/2005
Note :
Movable/improvable property transactions
entered into by the spouse of an Officer who is not
wholly dependant on the Officer, need not be
reported to the Competent Authority if such
transactions have been made out of his/her own
funds (including 'Stridhan,', Gifts, inheritance etc.)
as distinct from the funds of the officer concerned, in
his/her own name and in his/her right.
(HAL/P&A/19(2)/98 DT. 20/8/98
5. The Competent Authority 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 by the Competent Authority include
details of the means by which or the source from
which such property was acquired.
Note :
The Division should computerize the property
returns of all the Officers for ensuring effective
implementation of the Rule by Government Scrutiny
24
on a random basis, and on specific information
about 20% of the annual property returns of
permanent employees of the Company so, that the
scrutiny cycle is completed once in every five years.
(HAL/P&A/19(2)/93 DT. 17/10/98)

II. Promotion of Companies etc.

No officer shall, except with the previous
sanction of the company, take part in the
registration, promotion or management of any
bank or other Company registered under the Indian
Companies Act, 1913 or any other law for the time
being in force.
Provided that an officer may take part in the
registration, promotion or management of a Co-
operative Society registered under the Co-
operative Societies Act, 1912 or any other law for
the time being in force or a literary or scientific or
charitable society registered under the Societies
Registration Act, 1860 or any corresponding law in
force.

III. Communication of official information :

No officer shall except in accordance with any
general or special order of the Company or in the
performance in good faith of the duties assigned to
him, communicate directly or indirectly any official
document or any part thereof to any officer or any
other employee or any other person to whom he is
not authorized to communicate such document or
information.
IV. Restriction on other employment etc.
No officer of the Company shall, except with
the previous sanction of the Competent Authority,
25
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 or
charitable nature or occasional work of literacy,
artistic or scientific character subject to the
condition that his official duties do not thereby
suffer;
2. Every officer of the Company shall report to
the Competent Authority, if any member of his
family is engaged in a trade or business or owns or
manages an insurance agency or commission
agency;
3. No officer of the Company shall, without the
previous sanction of the Competent Authority
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( I of
1956) or other law for the time being in force or
any co-operative society for commercial purposes;
Provided that an officer on the Company may
take part in the registration, promotion of a society
substantially for the benefit of the employees of the
Company, registered under the Co-operative
Societies Act 1912 ( 2 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(21 to 1860) or any
corresponding law in force.
4. No officer of the Company may accept any fee
or any pecuniary advantages for any work done by
him for any public body or any private person
without the sanction of the Competent Authority;
26
5. Employment of near relative of the officer of
the Company in any firm enjoying patronage of
the Company:
i) No officer shall use his position or influence
directly or indirectly to secure employment in the
Company or any firm enjoying patronage of the
company 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.
ii) No officer shall except with the previous
sanction of the Competent Authority, 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 company or
firm, having official dealings with the company
provided that where the acceptance of the
employment cannot await the prior permission of
the Competent Authority, the employment may be
accepted provisionally subject to the permission of
the Competent Authority, to whom the matter shall
be reported forthwith.
iii) No officer shall in the 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 in any other manner 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
instructions of the authority to whom the reference is
made.
27
Note : Employees should inform their respective
Divisional/Office management through their
Section/Departmental Head about employment of
their near relatives (viz. father, mother, spouse,
children including step children, brother, sister) in
the firms with which the Division/Office of HAL have
business dealing. This is with a view to protect the
interest of the company and ensure that the
concerned Division/Office enters into a fair and
proper business/ transaction with such firms.
(HAL/P&A/19(2)/90/Vol. V DT. 5/8/97)

V. Connection with Press or Radio:

No officer of the company shall, except with the
previous sanction of the Competent Authority, own
wholly or in part or conduct or participate in the
editing or Management of any news paper or other
periodical publication;
2. No officer of the Company shall, except with
the previous sanction of the Competent Authority;
or the prescribed Authority 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 sanction shall be required if such broadcast or
such contribution is of a purely literary, artistic or
scientific character,
V (A). Prohibition of political activities:
Officers are prohibited from:-
a) becoming an office-bearer of a political party
or an organization which takes part in politics;
b) taking part in assisting in any manner in any
movement/agitation or demonstration of a
political nature;
28
c) taking part in an election to any legislature
or local authority; &
d) canvassing in any election to any legislature
or local authority.
(PC No. 539 DT. 9/4/85)

VI. Inventions and Patents :

No officer shall, without the previous
consent in writing of the Company, apply for a
patent or exclusive privilege in respect of any
invention under any enactment, if such invention is
made by him when in the service of the Company,
and he shall in the event of a patent or exclusive
privilege under any such enactment to make, sell
and use such invention or allow others to do so,
being granted to him, grant to the Company the
unqualified right to adopt and use the said
invention without its being obliged to pay any
royalty or other consideration therefor. He shall
not assign, charge or transfer in any manner
whatsoever his original or any extended patent or
exclusive privilege in respect of the said invention,
without the previous consent in writing of the
Company and without providing for the unqualified
use, free of charge of the Company of the said
invention and further he shall, on demand execute in
favour of the Company such letters of licence or
other deed or document for the purpose as it may
advise; provided always that the Company at any
time within six months of the receipt of any
intimation from the employee that he has acquired
such patent of exclusive privilege in India or
abroad shall have the right to require the employee
to transfer and assign such patent or exclusive
privilege to the Company for such consideration as
the Management shall at its discretion fix and if
suc h right is exercised, the employee
29
shall execute all such deeds of assignment, grants
and assurances and do all such acts, deeds and
thing for vesting in the Company and/or its
nominees the ownership of the patent or exclusive
privilege and the full benefit thereof as the
Company shall require.

VII. Vindication of Official Acts:

No officer shall , except with the previous
sanction of the Chairman/ Managing Director/
General Manager or any other officer authorized
in this behalf have recourse to any Court or to the
press for vindication of any official act which has
been the subject of adverse criticism or an attack of
defamatory character;
Provided that nothing in this regulation shall be
deemed to preclude an officer from vindicating his
private character or any act done by him in his
private/personal capacity;

VIII. Influence:
No officer shall bring or attempt to bring any
outside influence to bear upon any superior
authority to further his interests in respect of matters
pertaining to his service in the Company.
Note :
a) Employees violating the provisions of Rule 5
(xii) and 5 (xiii) under CDA Rules should be advised
by the appropriate disciplinary authority to desist
from approaching outsiders/ outside bodies
including MPs/MLAs Representatives of other
organizations etc. to further his/her interest in
respect of matters pertaining to service conditions.

30
 b) If an employee is found guilty of violating
the above provisions of the rules for the second
time, despite the issue of advice on an earlier
occasion, a written warning should be issued to
him/her by the appropriate disciplinary authority
and a copy thereof should be placed in his/her CR
dossier/ performance appraisal report.
c) If an employee is found guilty of violating
the above provisions of the rules, despite the issue
of warning to him/her, disciplinary action should be
initiated against him/her, under the provisions of
Conduct, Discipline and Appeal Rules/Disciplinary
Action Rules/Standing Orders, as the case may be.
(PC No. 623 dt. 1/7/95)

IX. Criticism of Government and the Company :

No officer shall, in any radio broadcast or in
any document published under his name or in the
name of any other person or under the name of any
Association in any communication to the press or in
any public utterances make any statement:
a) which has the effect of adverse criticism of
any policy or action of the Central or State
Governments or of the Company;
OR
b) which is capable of embarrassing the
Company.
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 or
classified information in his official capacity or in
due performance of the duties assigned to him.

31
X. Evidence before Committee or any other
Authority :
Save as provided in Sub-rule(3), no officer of
the Company shall except with the previous sanction
of the Competent Authority, give evidence in
connection with any enquiry conducted by any
person, committee or authority;
2. Where any Sanction has been accorded under
Sub-rule (1) no officer giving such evidence shall
criticize the policy or any action of the Central
Government or of a State Government or of the
Company;
3. Nothing in this rule shall apply to:
(a) evidence given at any enquiry before an
authority appointed by the Government,
Parliament or a State Legislature or Company;
(b) evidence given in any judicial enquiry; or
(c) evidence given at any departmental enquiry
ordered by authorities subordinate to the
Government.

XI. Investment, Lending and Borrowing:

No officer shall, save in the ordinary course of
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 of any
member of his family.
Employee should not purchase shares out of the
equity reserved for friends and associates of
Directors of Companies. Officers of the Company
32
should send an intimation to the prescribed
authority in case the total transaction in
shares/securities/debentures or mutual fund
schemes exceed Rs.50,000/- during the calendar
year.
Note : Purchase of shares by employees from
Directors/Promoters and Employees equity of
Companies etc. should be monitored by Public
Sector Undertakings with a view that such
transactions do not embarrass, or influence them in
discharge of their official duties.
(HAL/P&A/19(2)/93, dated 13.10.1993)

XII. Insolvency and Habitual Indebtedness:

1. An officer of the Company 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;
2. An officer of the Company who applies to be
or is adjudged or declared insolvent shall forthwith
report the fact to his Competent Authority.

XIII. Bigamous Marriage:

1. No officer shall enter into or contract a
marriage with a person having a spouse living; and
2. 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
referred to in clause (1) or clause (2) if it is satisfied
that:
a) Such marriage is permissible under the
personal law applicable to such officer and the
other party to the marriage; and
33
b) There are other grounds for so doing.
c) An officer who has married or marries a person
other than that of Indian Nationality, shall forthwith
intimate the fact to the Competent Authority.

XIV. Consumption of intoxicating drinks and

drugs :
An officer of the Company shall take due care
that the performance of his duties is not affected in
anyway by the influence of any intoxicating drink or
drug;

XV. Gifts:
Save as otherwise provided in these rules, no
officer of the Company 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, board, lodging or other service 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:
(1) An officer of the Company shall avoid
acceptance of lavish or frequent hospitality from
any individual or firm having official dealings with
him;
(2) On occasions suc h as weddings,
anniversaries, funerals or religious functions, when
the making of gifts is in conformity with the
prevailing religious or social practices, an Officer
of the Company may accept gifts from his near
relatives but he shall make a report to the

34
Competent Authority if the value of the gift exceeds
Rs.4000/- in respect of Officers in Grade-I; and
Rs.7000/- in respect of Officers in Grade-II &
above;
(3) On such occasions as are specified in Sub-
rule (2), an Officer of the Company may accept
gifts from his personal friends having no official
dealings with him, but he shall make a report to the
Competent Authority if the value of the gift exceeds
Rs.4000/- in respect of Officer in Grade-I; and
Rs.7000/- in respect of Officer in Grade-II &
above;
(4) In any other case, an Officer of the
Company shall not accept or permit any other
member of his family or any other person acting on
his behalf to accept any gifts without the sanction of
the Competent Authority if the value thereof
exceeds Rs.1500/-.
Provided that when more than one gift is
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 exceed Rs.1500/-.
(Letter No. HAL/P&A/19(2)/2012 dated
17.05.2012).

XVI. No officer of the Company shall :

i) Give or take or abet the giving or taking of
dowry ; or
ii) Demand directly or indirectly, from the parents
or guardian of a bride or bride-groom, as the case
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).
35
XVII. Official and Social Calls:
Officers should particularly ensure that the
contacts with representatives of other countries
are limited to their appropriate official levels.

XVIII. Return of hospitality accepted from

Foreign Missions :
Diplomats are specially paid to enable them to
entertain local officials and that the local officer's
capacity to return their hospitality is limited. There
need not, therefore, be anything like a quid pro quo
basis maintained in the matter of entertainment
between diplomats and Company Officers.
XIX. Supply of information to members of
Missions and Nationals of other countries :
The supply of or imparting of information to other
members of Missions or to nationals of other
countries should not be done directly or by
implication by any officer as it is the responsibility
of either the Ministry of Defence or the Ministry of
External Affairs. It is also imperative that no
information of a secret or confidential nature
relating to HAL service matters or pertaining to
Defence matter should be disclosed to a Foreign
national directly or indirectly or through any other
channel. If officers are approached for any
information by Service Advisers/Attaches, Advisers
of a foreign country, they should be advised to
contact the HAL Corporate Office or the concerned
Managing Director or the General Manager. If
other members of a Foreign Mission or if nationals
of a foreign country approach for information, they
should be advised to contact the HAL Corporate
Office or the concerned Managing Director or
General Manager as the circumstance demand.
36
XX. Putting up or staying with Foreign Nationals
as Guests :
a) Officers should not stay as guests with foreign
diplomats in India or abroad, except with the
permission of the Competent Authority.
b) Officers should not invite foreign diplomats to
stay with them as their guests in India. Residential
accommodation whether owned by the officer or
allotted to him by the Company, where he actually
resides, should not be let out or shared with foreign
nationals/members of Diplomatic Mission and their
employees, except with the approval of the
Competent Authority.
(PC No.587, dated 25.2.1989)
Note:All request for letting out/sharing
accommodation with full details of property, rate
of rent, advance, if any, containing interalia, the
following particulars in respect of the concerned
officer as well as the Foreign National/Employee
of diplomatic Mission etc., should be forwarded to
Corporate Office for clearance, in consultation with
the Department of Defence Production & Supplies
and Ministry of Home Affairs(IB) :-
a) Parentage
b) Date of birth
c) Place of birth
d) Present & Permanent address
e) Nationality
(HAL/P&A/19(2)/80/Vol.V, dated 26.4.1991
XXI. Employment of wife/members of family
of Officers :
If an officer's wife/members of the family (in
the case of female employees whose husband
whether dependent on her or not or whose other
37
dependents) intends to take up employment with
foreign missions in India/Abroad, he/she should
apply through proper channel and obtain a 'NO
OBJECTION' certificate from the Corporate Office
before accepting such employment. No such
appointment should be accepted without prior
permission.
XXII. Acceptance of lifts in Aircraft belonging to
foreign embassies in India to Foreign
Government abroad:
No officer should accept or permit his wife or
dependent to accept passage money or free air
transport from a Foreign Mission/Government
Organization. Exceptional cases where
humanitarian or Compassionate grounds are
involved should be referred to the Corporate
Office for grant of permission
There would, however, be no objection to the
acceptance of the cost of passage when invited by
foreign Governments and organizations to
participate in conferences, seminars etc., if the
invitation is extended to a particular official by
name with a view to benefit from the expertise of
the officer invited. Cases of such an invitation may
be referred to Corporate Office for obtaining
approval of the Ministry of Defence before
acceptance. In other cases in which participation in
conferences etc., is considered desirable in the
interest of the officer concerned or the Division
sponsoring his deputation, the cost of passage
should continue to be met by the sponsoring
Division.
Within a foreign country, an officer could accept a
free flight in connection with his official duties only.
When an officer and his family are in a foreign
country as State Guests it would be permissible for
them to accept free flights from Foreign
Governments.
38
Note : Deputation of employees to Foreign
Countries :
The system of submitting the report by employees
on completion of business visits, training etc.,
abroad, as follows :-
Employees at the level of Report to be submitted to
Director Chairman
Chief Manager to Concerned Director
Executive Director
Senior Manager & below Concerned General Manager /
Executive Director
It is further decided that in cases where the
employees notice any aspects related to Security &
Vigilance angles in the behavior of the personnel
whom they meet abroad or in the interactions with
them, the same would be intimated by the
employees to the Vigilance Department.
Accordingly, copies of the Reports wherein
employees furnish details under Paras IV & V
(Vigilance & Security aspects respectively) (as per
Paras-11 & 12 of the prescribed Format notified
vide the Circular dated 22nd September 1999
referred at (ii) above) will be forwarded to the
CVO, Corporate Office also.
If at any stage it is found that the Government
instructions on the subject are at variance with the
above instructions, the Government instructions on
the subject would prevail.
( HAL/P&A/28(12)/2007 Dt.30/10/2007)
XXIII. Disposal of immovable property by lease
from Foreign Nationals and to Foreign Nationals.
Officers are forbidden to dispose of or
acquire any immovable/movable property by
lease or otherwise except with the prior knowledge
of the Competent Authority. When such transaction
is conducted otherwise than through a regular or a
reputed dealer prior permission of the Competent
Authority is necessary. Thus in either case that is,
39
whether the transaction is by direct negotiations or
through a regular dealer, the Competent Authority
must know the terms and conditions of the proposed
transaction and also the party to whom the
property is to be leased or acquired. In dealing
with all cases relating to disposal/acquisition by
HAL personnel of immovable/movable property
whether by lease or otherwise, the Competent
Authority concerned should exercise great care
where foreign missions or their employees are
concerned; such authority should keep in mind the
security angle and also ensure that the officer does
not derive any undue advantage from the
transaction and thus place himself under an
obligation direct or indirect on the foreign missions
or its employees.
While officers can give reasonable publicity
to the effect that their houses are available for
hiring, it shall be undignified and undesirable for
them to solicit offers from Diplomatic Missions or
Members of such Missions.
XXIV. Joining of Foreign language classes:
Officers or their wives who desire to join a
School or language classes conducted by an
organization controlled or subsidized by foreign
Govt/Missions and Indo-Foreign Cultural
Organization, may join such classes with the prior
permission of the management. Normally they are
expected to utilize the facilities available in the
school of Foreign Languages.
XXV. Association of officers with Indo-Foreign
cultural organization.
Officers should not be allowed to actively
participate or become members in the activities of
40
Indo-Foreign Cultural Organization such as the
German-Indian association, the Indo-Soviet
Cultural Society etc.
XXVI.Supply and procurement of films/literature
from foreign missions for display among the
officers :
On no account whatsoever should officers
approach foreign missions or the Information
Services of foreign commercial concerns or foreign
non- Government organizations directly for the
supply of any film or literature. Where foreign
embassies etc. send any films/literature to Divisions
on their own initiative, the Division should return the
film/literature to the embassy etc., concerned
tactfully.
XXVII. Prohibition or Sexual Harassment of
working Women.
i) No officer shall indulge in any act of sexual
harassment of any woman at her work place;
ii) Every officer who is incharge of a work
place shall take appropriate steps to prevent
Sexual harassment to any woman at such work
place.
Explanation:
For the purpose of this rule, Sexual
harassment includes such unwelcome sexually
determined behavior (where directly or by
implication) as-
a) Physical contact and advances :
b) A demand of request for sexual favours;
c) Sexually coloured remarks;
d) Showing pornography
e) Any other unwelcome physical, verbal or
non verbal conduct of sexual nature;
(HAL/P&A/19(2)/97, dt. 31.12.97 &
HAL/P&A/19(2)/97, dt.23.7.98)
41
Note :
The Code of Conduct for work place issued by the
National Commission for Women is to be followed.
(HAL/P&A/19(12)/559, dated 20.10.1998)

XXVIII. Restrictions on Board Level Officers

joining Private Commercial Undertakings after
their retirement:
a) No Functional Director of the Company
including Chairman, who has retired / resigned
from the service of the Company, after such
retirement / resignation, shall accept any
appointment or post, whether advisory or
administrative, in any Firm or Company, whether
Indian or Foreign, with which the Company has or
had business relations, within 1 year from the date
of retirement, without prior approval of the
Government. The term 'retirement' includes
'resignation', but not cases of those whose term of
appointment was not extended by the Government
for reasons other than proven misconduct. The term '
business relation' includes 'official dealings' as well;
b) Functional Directors, including the Chairman,
who after superannuation or resignation accept
appointment in private commercial firms without
prior sanction of the Government, will henceforth
be debarred from being appointed as Full Time /
Part Time Directors of CPSEs;
c) In order to ensure compliance of the above
restrictions, the Company shall secure a Bond, in the
specified proforma, at the time of his appointment
/ retirement / resignation as Director / Chairman in
the Company;

42
d) For any violation of the above specified
procedure, the Director / Chairman will pay Rs. 5
Lakhs as 'damages' to the Company.
(HAL /P&A/19(2)/10 dt10th August 2010)
XXIX: Imposing restrictions on dealing with
shares of CPSEs:
a) A Full - Time Director / Chairman or any
Officer / Employee involved in the decision making
process of fixation of price of an IPO / FPO of
Shares of the Company 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 types of equity related instruments) in an
IPO/FPO of the Company, even out of the category
of preferential quota reserved for Employees /
Directors of HAL;
b) All Officer / Employees including Full Time
Directors / Chairman of HAL 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 HAL;
c) Full-Time Directors/Chairman or Officers /
Employees of HAL 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;
d) All Employees of HAL would be required to
report to the Company 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 his / her own Company either
in his / her own name or in the name of any family
member, indicating the quantity, price, date of
transaction and nature of interest within 4 working
days.(HAL /P&A/19(2)/10dt10th August 2010)
43
 SCHEDULE II
(Rule 11 (i) of Annexure I- refers)
PROCEDURE FOR DISCIPLINARY ACTION
Where disciplinary action is to be taken
against an officer under Rule 11, the following
procedure will be followed:-

I. Investigation :
2. On receipt of information or report that an
officer has committed misconduct the Competent
Authority or its next higher authority or appointing
authority may at his discretion, cause an
investigation to be carried out to ascertain whether
or not there is a prima facie case to take
disciplinary action against the officer. Where he is
satisfied that no such investigation is necessary, he
may dispense with such investigation and proceed
to issue charge sheet to the delinquent officer. If
the officer admits guilt during the course of
investigation, such admission should be recorded in
the presence of and signed by the officer
concerned.

II. Chargesheet:
3. If the competent Authority or such other
disciplinary authority as the case may be, satisfies
itself on receiving information or report on
preliminary investigation that there is a prima-facie
case for taking disciplinary action against the
officer, the latter should be served with the written
charge- sheet clearly setting out the alleged
misconduct and such other details as may be
necessary to enable the officer to prepare his
defence. The officer charged should be given a
reasonable time of not less than 7 days from the
date of charge-sheet to submit his written
explanation. 45
III Enquiry:
4 If the officer accepts his guilt, no further
enquiry is necessary. Similarly, where the
Competent Authority comes to the conclusion after
consideration of the explanation of the officer that
only minor punishment is warranted in the case, he
may award the appropriate minor punishment
without conducting enquiry.
5. If no explanation is received from the Officer
charged within the time specified or where the
Competent Authority on receipt of the explanation
of the officer comes to the conclusion that further
proceedings are called for, such authority may
appoint in writing an Enquiry Officer or Enquiry
Committee consisting of one or more members to
hold enquiry into the charges against the officer.
6 Where the disciplinary proceedings are
initiated in consultation with or at the instance of
Central Vigilance Commission, the Competent
Authority may appoint a Commission nominated by
the Central Vigilance commission to conduct the
enquiry.
7. The concerned authority itself may enquire into
the charges or may appoint in writing an officer of
the company or other person who is not HAL
employee, as he may deem fit, as 'Presenting
Officer' to present the case on behalf of such
authority.
8. The officer charged should be informed in
writing of the date and time when the enquiry will
be held and it shall be obligatory on the part of the
officer to present himself before the Enquiry
Officer/Enquiry Committee at the appointed time.
46
The officer should also be informed that in the event
of his failure to present himself before the Enquiry
Officer/Enquiry Committee, the proceedings will
be conducted ex-parte and that he is eligible to be
assisted during the proceedings by a co-officer
working in the same Office/Division situated at the
same place where the officer is working. He shall
not however take the assistance of an officer who
has two pending disciplinary cases on hand in which
he is functioning as Co-officer. He shall not also be
entitled to engage a legal practitioner for this
purpose.
9.The officer charged along with his Co-officer will
be entitled to be present during the hearing of
witnesses. Evidence shall be taken in their presence
except in ex-parte proceedings. Should the officer
so charged fail to attend the enquiry or after
attending it refuses to take part in the enquiry, the
Enquiry Officer/ Enquiry Committee will conduct
ex-parte proceedings after recording the reasons
therefor.
10. On the date fixed by the Enquiry Officer /
Enquiry Committee, the officer shall appear before
that enquiry authority at the time, place and the
date specified in the notice. The enquiry
Officer/Enquiry Committee shall ask the officer
whether he pleads guilty or not. If he pleads guilty
to any of the charges, the Enquiry Officer/Enquiry
Committee shall record the same, sign the
proceedings and obtain the signature of the
employee concerned thereon. The Enquiry
Authority shall record a finding of guilt in respect of
those articles of charge to which the officer
concerned has pleaded guilty.
47
11. If the officer charged does not plead guilty,
the Enquiry Authority shall continue with the enquiry.
12. On the date fixed for the enquiry the oral
and/or documentary evidence by which articles of
charges are proposed to be proved shall be
produced by /or on behalf of the Disciplinary
Authority. The witness shall be examined by/or on
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 point on which they have been
cross examined but not on a new matter without the
permission of the Enquiry Officer/Enquiry
Committee. The Enquiry Officer/Enquiry
Committee may also put such questions to witnesses
as it thinks fit.
13. Before close of the prosecution case, the
Enquiry Authority may, at his discretion allow the
Presenting Officer to produce evidence not
included in the charge-sheet or call for new
evidence or recall or re-examine any witness. In
such cases the officer shall be given opportunity to
inspect the documentary evidence if any before it is
taken on record or to cross-examine a witness who
has been so summoned.
14. When the prosecution case 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.
15. The evidence on behalf of the officer shall
thereafter be produced. The officer may examine
himself in his own behalf if he so prefers. The
witnesses produced by him will be examined by the
48
 officer himself or by the co-officer on behalf of him
and the witness is also liable for cross-examination,
re-examination and examination by the Presenting
Officer, Officer charged and the Enquiry Authority
respectively.
16. The statement made by each witness shall be
succinctly recorded by the Enquiry Officer / Enquiry
Committee and will be signed by the witness and
countersigned by the officer charged. It is not
necessary to write down questions and answers
except where absolutely necessary on a crucial
point where the admission or denial must be
recorded verbatim.
17. When a witness comes before the Enquiry
Officer / Enquiry Committee he should be asked to
make a statement of facts within his knowledge
relating to the charge. The officer charged shall be
entitled to cross-examine such witness but the
witness will not be permitted to cross-examine the
officer charged. The officer charged can be
examined only by the Enquiry Officer / Enquiry
Committee. If on the evidence given by the witness
the Enquiry Officer/Enquiry Committee wishes to
examine the officer charged, this may be done in
the absence of the witness who made the statement.
The witness could be recalled later, if necessary.
18. Wherever the Enquiry Officer/Enquiry
Committee after having heard and recorded the
whole or any part of the evidence in an enquiry
ceases to exercise jurisdiction and is succeeded by
another Enquiry Officer/ Enquiry Committee, the
authority so succeeding him may act on the

49
Evidence already recorded by his predecessor or
partly recorded by his predecessor and partly
recorded by itself. If the succeeding officer/
committee is of the opinion that further examination
of any of the witnesses whose evidence is already
recorded is necessary in the interest of justice it may
recall, cross-examine and re-examine such witness.

IV. Witnesses:
19. The following witnesses as applicable may be
examined before the Enquiry Officer / Enquiry
Committee:-
a)those upon whose testimony the charge was
based ;
b)those whom the officers charged may bring
forward as witness in his defence. The persons
charged will be required to indicate the points
on which such witnesses give evidence and it is
open to the Enquiry Officer/ Enquiry
Committee on scrutinizing the list where it
appears to be vexatious or frivolous to restrict
this number of witnesses only to the points of
enquiry;
c)any other person whose evidence being
r e l e va n t , t h e C o m m i t t e e c o n s i d e r s i t
necessary to record.

V. Common Proceedings:
20. Where two or more officers are concerned in a
case, the Competent Authority empowered to
impose major punishment on all of them may make
an order in writing that disciplinary proceedings
against all of them may be taken in common
proceedings and such authority may function as the
Competent Disciplinary Authority for the purpose
of common proceedings.
50
VI. Final Statement :
21. After all the evidence which is necessary and
relevant for the purpose of enquiry has been
recorded the Enquiry Authority may after
completion of production of evidence, hear the
presenting officer if any appointed and the officer
or permit them to file written briefs of their
respective cases if they so desire. This statement
should be recorded in writing and signed by the
person charged. In case the person charged or any
witness refuses to sign his statement or deposition
that fact should be recorded in the enquiry
proceedings.

VII. Report of the Enquiry Committee :

22 The Committee of Enquiry should formulate its
report in the following order:-
a) Charges contained in the charge sheet;
b) Summary of the evidence recorded;
c) Analysis of evidence and Enquiry Committee's
observations thereon;
d) Findings in respect of each of the charges and
reasons for arriving at these findings.

VIII. Order by Competent Authority:

23. The Competent Authority on receiving the
report of the Enquiry Committee shall satisfy itself
as to the correctness of the findings by giving its
independent attention to the Weightage of
evidence both for and against the charges. Where
the authority agrees with the findings of the Enquiry
Committee, it is not necessary for it to give reasons
for the acceptance of the report but where it
disagrees, it shall record the reasons for such
51
disagreement. The Competent Authority shall
thereafter issue an order of punishment. In
awarding punishment the authority shall take into
consideration the extent and gravity of the
misconduct, previous service record of the person
charged and any extenuating or aggravating
circumstances of the case.
If a Departmental Enquiry was constituted by the
Disciplinary Authority as per rules, a copy of the
Enquiry Report be given invariably to the
Delinquent by the Disciplinary Authority whenever
any penalty is proposed to be imposed, whether
'minor' or major, and representation, if any, from the
Delinquent may be called for thereafter.
Thereafter, the Enquiry Report may be considered
by the Disciplinary Authority taking into account the
representation, if any, of the Delinquent and
appropriate penalty imposed having regard to the
gravity of the charges etc. and his past records etc.
A proforma of the letter to be issued while
forwarding copy of the Enquiry Report is at
Appendix-V.
(HAL/P&A/19(2)/Vol. V DT. 5/7/91&22/10/94)
IX. General:
24. In a case where an appeal lies and the person
charged request for a copy of the Enquiry
Committee's Report and / or enquiry proceedings
to enable him to prefer an appeal, the Competent
Authority shall supply him with a copy of the Enquiry
Committee's Report and / or with a copy of the
enquiry proceedings. Similarly, at a request of the
person charged, the Enquiry Committee shall during
the course of the Enquiry also supply him with a
copy of the Enquiry Proceedings/Statement
recorded before the Enquiry Committee.
52
 Note:
i) It is important that an investigation and/or
enquiry into any irregularities or misconduct be
completed within the shortest possible time. Delay
in disposal of disciplinary cases is neither in the
interest of the concerned employees nor the
management. The Departmental Enquiry
Committees should conduct regular hearings on a
day-to-day basis and desist from granting
adjournments on frivolous grounds as a matter of
routine. It is also essential that the procedure laid
down in the Conduct, Discipline & Appeal Rules /
other relevant rules are meticulously followed. This
may be brought to the notice as and when
Disciplinary Authority appoints an Officer as
Enquiry Officer.
(HAL/P&A/19(1)/483, dated 2.11.1995)
ii) Divisions should monitor the pending
disciplinary cases pertaining to Vigilance aspects
and ensure that these cases are disposed off at the
earliest except where compelling circumstances
such as stay by Courts etc. are prevailing. These
cases should be disposed of within a period of six
months from the date of issuance of charge sheet.
General Managers are personally responsible for
such delays.
(HAL/P&A/19(5)/97, dt. 2.12.97 &
HAL/P&A/19(5)/97/1753, dt. 16.12.97)
iii) The designated Disciplinary Authority of
Transferor Division/Complex will be empowered to
take Disciplinary Action against such transferred
employees by signing the Charge Sheet etc. All the
communications from the Disciplinary Authority to
such employee are to be issued through the Head
of the Transferee Complex/Division as the case
may be.
(HAL/P&A/19(3)/2005 dt. 16.8.2005)
53
25. Need for self contained speaking and
r e a s o n e d o r d e r t o b e i s s u e d by
Disciplinary/Appellate Authorities.
(i) Disciplinary proceedings are quasi-judicial
in nature and therefore it is necessary that orders
issued by such authorities should have the attributes
of a judicial order.
(ii) Recording of reasons in support of a
decision by a quasi-judicial authority is obligatory
as it ensures that the decision reached is in
accordance with law.
(iii)Disciplinary / Appellate authorities are
required to apply their mind to the facts and
circumstances of the case and to come to their own
conclusions, though they may consult outside
agencies, like the CVC.
(iv)Instances exists, wherein Orders passed
without application of mind by the Disciplinary /
Appellate Authorities while passing
the order (viz imposing punishment etc.) based on
the recommendation of CVC without bringing out
the reasons for not accepting the representation of
concerned employee on the findings of Enquiry
Officer, were quashed by the courts on the
ground of non application of mind by the concerned
authorities.
(v) All orders of Disciplinary / Appellate
Authorities should be self contained, speaking and
reasoned orders confirming to the legal
requirements which must indicate inter-alia the
application of mind by the concerned authorities.
While on the subject, it would be further relevant to
mention that reference to vigilance
opinion/investigations as also opinion of other
authorities of management relating to particular
case should not be incorporated while issuance of
orders by Disciplinary / Appellate Authorities,
as this clearly indicates that the appropriate
authority has not applied its mind to the case.
(HAL/P&A/19(2)/Vol. VI dated 2.12.2003)
54
 APPENDIX - I
(Rule -10 of Annexure I refers)

DISCIPLINARY AND APPELLATE AUTHORITIES

UNDER THE HAL CDA RULES 1984
(For all Divisions / Offices)

Ref: Sl. No. I (43)- HR, DOP-2012

55
Explanation 1): If the Disciplinary Authority /
Appellate Authority mentioned above is not
available in respect of any Officer, the Authority
next above the said Authority will exercise the
powers of such Authority.
Explanation 2) : With respect to cases which call
for Dismissal as a punishment, if the Disciplinary
Authorities proposed above are not the Appointing
Authorities for the respective Grades, the
concerned Appointing Authorities (as per
Delegation of Powers) on considering the entire
case shall pass orders as Disciplinary Authority. In
such an event, the next higher Authority will be the
Appellate Authority.
Explanation 3) : In respect of Officers in Grades I
to VI of the Vigilance Department, CVO would be
the Disciplinary Authority and Chairman would be
the Appellate Authority.
HAL/P&A/19(2)/2005/64, dt. 7.2.2005)

56
57
Disclaimer:
The objective of publishing this booklet is to
sensitize our colleagues regarding the provisions of
HAL CDA Rules, 1984. This compilation is not an
official policy of HAL. For specific issues, the
relevant official policy / directives / guidelines
may please be referred to.
Ethics & Corporate Governance are not
just Moral or Compliance Issues. In the long
term they are Essential Behavioral Traits for
the Organisation, that strengthen the
Organisation's Brand Equity and help
ensure Stable Sustainable Growth.

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