Department memorandum, dated the 22nd March 1958 communicated in
Memo. No. 4021 (82(.Gen.,-2R/1-24/58, dated the 22nd March 1958 to all3166
Departments of Government & etc.
Subject:- Prohibition of Government servants from bidding (either personally or by proxy) at Government auctions.
A question has been raised whether a specific provision should be added to the Government Servants’ Conduct Rules regarding participation by Government servants in auctions of property owned or confiscated by Government. Even if the transaction is in fact free from any element of undue influence or dishonesty, the suspicion that all is not above board is bound to arise in case where property sold at Government auctions is purchased by Government servants, particularly by buyers belonging to the same department as the one by which or under whose orders the auction is conducted. While, therefore, it may not be necessary to frame a specific conduct rule for the purpose, it is obviously undesirable for Government servants to bid at auctions arranged by their own departments. Any Government servant who does so would be regarded as indulging in conduct unbecoming a Government servant within the meaning of the Conduct Rules.
These instructions will also apply to members of the All India Services serving under the State Government.