Lok Sabha Question No. 11 (UNSTARRED), answered on 2018-07-18
Subject: Recruitment Procedure of Private Companies
Ministry: DEFENCE
Asked by: KAMLESH  PASWAN, PRABHATSINH PRATAPSINH CHAUHAN, (SMT.) RATNA DE(NAG)

## GOVERNMENT OF INDIA MINISTRY OF DEFENCE DEPARTMENT OF DEFENCE PRODUCTION

## LOK  SABHA UNSTARRED QUESTION NO.11

TO BE ANSWERED ON THE 18 TH  JULY, 2018

## RECRUITMENT PROCEDURE OF PRIVATE COMPANIES

## 11. SHRI KAMLESH PASWAN:

SHRI  P.P. CHAUHAN:

DR. RATNA  DE (NAG):

Will the Minister of DEFENCE j{kk ea=h be pleased to state:

- (a) whether  private  sector  companies  operating  in  Defence  sector  are  employing retired bureaucrats,  service  personnel,  kith  and  kin of  bureaucrats  and  armed  forces  to manipulate and ensure that they are looked after and to have an edge over its competitors;
- (b) if so, the details thereof;
- (c) whether there is any ban on such recruitments to avoid situations where officers become vulnerable to outside pressures during processing of cases having huge financial implication on such companies;
- (d) if  so,  whether any action is being taken on such companies and if so, the details thereof; and
- (e) if not, the reasons therefor?

## A    N    S    W    E    R

MINISTER OF STATE IN THE MINISTRY OF DEFENCE

(DR. SUBHASH BHAMRE)

र  ा रा य मं ी

(डा. सुभाष भामरे)

(a) to (e): A Statement is attached.

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## STATEMENT  REFERRED  TO  IN  REPLY  TO  PARTS  (a)  TO  (e)  OF  LOK SABHA UNSTARRED QUESTION NO. 11 FOR ANSWER ON 18.07.2018

There  is  no  ban  on  employment  of  retired  bureaucrats,  service personnel, kith and kin of bureaucrats and armed forces in private sector companies operating in Defence sector.

2. As per the existing rules, if a pensioner, who, immediately before his retirement, was member of Central Service Group 'A' wishes to accept any commercial  employment  before  the  expiry  of  one  year  from  the  date  of retirement shall require to obtain the prior sanction of Government.  While granting  permission  in  such  cases,  the  Government  take  into  regard  the factors such as No Objection from Cadre Controlling Authority, whether the officer has been privy to sensitive or strategic information in the last three years of his service, conflict of interest between the policies of the office he has held and the interest of the organisation he proposes to join, any other relevant facts.
3. The  Defence  services  officers  of  the  rank  of  Colonel  or  equivalent and  above,  who  retire  with  pension,  gratuity  or  any  other  benefits  in respect of the services rendered by them are also required to obtain prior permission of the Government for accepting any commercial employment within a period of one year from the date of retirement.
4. Before granting permission in such cases, the Government satisfies itself that:
4. (i) The  duties  of  the  retired  officers  in  the  proposed  commercial employment will not be such as to bring him into conflict with the Government;
5. (ii) There  is  no  basis  for  suspecting  that  such  employment  has been offered to the officer for any favour which he might have shown, while in services, to the prospective employer;
6. (iii) That any official information, knowledge or contacts  which the officer  might  gained  by  virtue  of  his  official  position  while  in service cannot be  used to give the prospective  employer any kind of unfair advantage.

:  2  :

5. Further, with regard to the safeguards which are considered essential and the need for rationalising the existing provisions, the following criteria is  followed  while  considering  requests  of  Ex-Service  officers  for  postretirement commercial employment:
2. (i) Any officer who has / had dealing with a particular firm and its sister  concerns  before  his  retirement  shall  not  be  allowed  to take up a job with that firm.
3. (ii) Any  officer in  an  appointment  dealing  with  contracts  and procurement shall  not  be  allowed  to  take  up  a  job  with  a  firm and  its  sister  concerns  which  has  subsisting  contract(s)  with Ministry of Defence.
4. (iii) If  the  proposed appointment calls for marketing or liaison  with Defence Establishments, such appointment shall not be permitted.
5. (iv) Appointments with companies / firms which operates in sensitive areas of Defence procurement or which have subsidiary firms having contracts with Ministry of Defence shall not be permitted.
6. (v) Appointments with foreign  Governments or  foreign firms  shall not  be  allowed  (such  restriction  shall  apply  to  only  foreign companies per se and foreign companies investing in India, but not Indian companies entering into foreign collaboration.  Apart from this,  only  those  foreign companies shall be excluded, for purposes  of  commercial  employment,  which  operate  in  the Defence sector).

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