This is Set 30 of 42 in the smartvidya question bank on the Central Civil Services (Conduct) Rules, 1964. Part VI: Investment, debt and property. This set covers GoI decisions under Rule 18: auctions, cars bought with Government advance, pagri, disproportionate assets, clubbing of purchases, spouse's own funds, deposits, loans, repairs, Power of Attorney and returns.
Try each question first, then tap Show answer to see the correct option, a short explanation and the rule reference. The gift limits in Rule 13(3) are as revised in 2019, and share-trading intimation follows the DoPT OM of 07.02.2019.
Set 30: Rule 18 – Government of India decisions
1. Government instructions of 21.01.1958 under Rule 18 say that Government servants should not:
(a) Bid at auctions arranged by the Government
(b) Take home loans from banks
(c) Own more than one house
(d) Buy property from their relatives
Ans. (a) Bid at auctions arranged by the Government — Explanation: The 1958 instructions bar Government servants from bidding at Government auctions, to avoid conflicts and misuse of position. [Ref: Rule 18; GoI decision dt 21.01.1958]
2. Under instructions of 05.03.1959, a Government servant who wants to sell a car bought with a Government advance needs:
(a) Only the permission of the dealer
(b) Only a report under Rule 18(3)
(c) No permission, since the car is his
(d) Separate permissions under the financial rules and the Conduct Rules, with the financial-rules permission first
Ans. (d) Separate permissions under the financial rules and the Conduct Rules, with the financial-rules permission first — Explanation: A car bought with a Government advance is hypothecated to the Government, so sale needs permission under the financial rules, obtained first, and separately under the Conduct Rules. [Ref: Rule 18(3); GoI decision dt 05.03.1959]
3. Government instructions of 26.06.1961 under Rule 18 say that ex post facto sanction for property transactions:
(a) Is needed only for movable property
(b) Is always granted
(c) Is the normal procedure
(d) Is discouraged; previous sanction or knowledge should be obtained in time
Ans. (d) Is discouraged; previous sanction or knowledge should be obtained in time — Explanation: The 1961 instructions discourage seeking sanction after the event. Where the rule requires previous sanction or knowledge, it must precede the transaction. [Ref: Rule 18; GoI decision dt 26.06.1961]
4. Government instructions of 16.12.1964 under Rule 18 relate to:
(a) Returns in forms I and II
(b) Fixed deposits
(c) Possession of assets disproportionate to known sources of income
(d) Bidding at auctions
Ans. (c) Possession of assets disproportionate to known sources of income — Explanation: The 1964 instructions deal with disproportionate assets, which are serious misconduct and may also attract criminal law. [Ref: Rule 18; GoI decision dt 16.12.1964]
5. Under instructions of 19.11.1965, paying "pagri" (a premium) to obtain tenancy of premises is:
(a) A customary gift
(b) Treated as a corrupt practice
(c) Permitted in metropolitan cities
(d) Permitted if reported
Ans. (b) Treated as a corrupt practice — Explanation: The 1965 instructions treat payment of pagri for tenancy as a corrupt practice. [Ref: Rule 18; GoI decision dt 19.11.1965]
6. Under instructions of 25.03.1967, several purchases made at the same time, at the same place or on the same bill are treated for Rule 18(3) as:
(a) Exempt transactions
(b) Separate transactions
(c) Immovable property transactions
(d) A single transaction
Ans. (d) A single transaction — Explanation: The instructions club such purchases into one transaction, so they cannot be split to stay below the two months' basic pay limit. [Ref: Rule 18(3); GoI decision dt 25.03.1967]
7. Government instructions of 11.09.1978 clarify that Rule 18 does NOT cover:
(a) Transactions in the Government servant's own name
(b) Transactions by dependent children
(c) Transactions by the spouse from his or her own funds
(d) Transactions through benami holders
Ans. (c) Transactions by the spouse from his or her own funds — Explanation: Transactions by the spouse from the spouse's own independent funds are not covered by Rule 18 of the Conduct Rules. [Ref: Rule 18; GoI decision dt 11.09.1978]
8. Government instructions of 04.10.1976 under Rule 18 relate to:
(a) Power of Attorney
(b) Pagri
(c) Chit funds and insurance
(d) Auctions
Ans. (c) Chit funds and insurance — Explanation: The 1976 instructions deal with how chit funds and insurance policies are treated under Rule 18 of the Conduct Rules. [Ref: Rule 18; GoI decision dt 04.10.1976]
9. Government instructions of 12.05.1982 under Rule 18 relate to:
(a) Pagri
(b) Annual returns
(c) Car sales
(d) Fixed deposits
Ans. (d) Fixed deposits — Explanation: The 1982 instructions deal with fixed deposits, exempting bank deposits and treating deposits with private companies as loans. [Ref: Rule 18; GoI decision dt 12.05.1982]
10. Government instructions of 23.06.1986 under Rule 18 relate to:
(a) The forms of property returns and intimations
(b) Auctions
(c) Loans from friends
(d) Disproportionate assets
Ans. (a) The forms of property returns and intimations — Explanation: The 1986 instructions deal with the forms for property returns and intimations. [Ref: Rule 18; GoI decision dt 23.06.1986]
11. Government instructions of 03.07.1986 relate to which part of Rule 18?
(a) Rule 18(4), on calling for property statements
(b) Rule 18(1)(ii), on annual returns
(c) Rule 18(5), on exemptions
(d) Rule 18A, on foreign property
Ans. (a) Rule 18(4), on calling for property statements — Explanation: The 03.07.1986 instructions relate to Rule 18(4), which empowers the Government or prescribed authority to call for property statements. [Ref: Rule 18(4); GoI decision dt 03.07.1986]
12. Government instructions of 27.03.1987 under Rule 18 clarify that:
(a) Loans from banks need previous sanction
(b) Loans are covered by the property rules
(c) Only secured loans are covered
(d) Loans are outside Rule 18
Ans. (b) Loans are covered by the property rules — Explanation: The 1987 instructions confirm that loans are covered, consistent with the Explanation that all loans advanced or taken are movable property. [Ref: Rule 18; GoI decision dt 27.03.1987]
13. Under Government instructions of 27.11.1990, what requires intimation under Rule 18?
(a) Expenditure on repairs of immovable property exceeding Rs. 10,000
(b) Premium on all insurance policies
(c) Monthly rent paid for a flat
(d) Any purchase of groceries
Ans. (a) Expenditure on repairs of immovable property exceeding Rs. 10,000 — Explanation: The 1990 instructions require intimation of repairs to immovable property costing over Rs. 10,000. [Ref: Rule 18; GoI decision dt 27.11.1990]
14. Under Government instructions of 29.12.1998, transactions of immovable property through a General Power of Attorney are:
(a) Treated as acquisition or disposal of immovable property, attracting Rule 18
(b) Permitted without any intimation
(c) Treated as movable property transactions
(d) Outside Rule 18
Ans. (a) Treated as acquisition or disposal of immovable property, attracting Rule 18 — Explanation: The 1998 instructions treat Power of Attorney transactions as acquisition or disposal of immovable property, so Rule 18(2) applies. [Ref: Rule 18(2); GoI decision dt 29.12.1998]
15. The OM of 08.04.1992 on share transactions under Rule 18 has been:
(a) Extended to immovable property
(b) Superseded by the OM dated 07.02.2019
(c) Continued unchanged
(d) Made more stringent in 2014
Ans. (b) Superseded by the OM dated 07.02.2019 — Explanation: The 2019 OM replaced the 1992 rupee limits with a limit of six months' basic pay in a calendar year. [Ref: Rule 18; OM dt 07.02.2019]
16. A Government servant buys a sofa, a bed and a dining table from the same shop on the same day, on separate bills, each below two months' basic pay but together above it. Under the 1967 instructions:
(a) Only furniture over Rs. 10,000 counts
(b) Each bill is separate, so no report is needed
(c) They are treated as one transaction and must be reported
(d) Furniture is exempt as daily-use items
Ans. (c) They are treated as one transaction and must be reported — Explanation: Purchases at the same time or place are treated as a single transaction. Splitting bills does not avoid the reporting requirement. [Ref: Rule 18(3); GoI decision dt 25.03.1967]
17. A Government servant acquires a plot through a General Power of Attorney instead of a sale deed and does not inform the prescribed authority. Which statement is correct?
(a) He has breached Rule 18(2), since GPA transactions are treated as acquisition of immovable property
(b) No breach, if he pays stamp duty
(c) No breach, since no sale deed was executed
(d) He needs only to report within one month
Ans. (a) He has breached Rule 18(2), since GPA transactions are treated as acquisition of immovable property — Explanation: The 1998 instructions treat GPA transactions as acquisition or disposal, so previous knowledge under Rule 18(2) was required. [Ref: Rule 18(2); GoI decision dt 29.12.1998]
18. A Government servant's wife, a doctor with her own practice, buys a car from her own earnings. Does the Government servant need to report under Rule 18(3)?
(a) Yes, since the car exceeds two months' basic pay
(b) No, transactions by the spouse from her own funds are not covered
(c) Only if the car is registered at their address
(d) Yes, since she is a member of his family
Ans. (b) No, transactions by the spouse from her own funds are not covered — Explanation: The 1978 instructions say a spouse's transactions from independent funds are not covered by Rule 18 of the Conduct Rules. [Ref: Rule 18(3); GoI decision dt 11.09.1978]
19. A Government servant spends Rs. 3 lakh on renovating his house. Under Government instructions, what is required?
(a) Previous sanction of the Government
(b) Only mention in the income tax return
(c) Intimation, since repairs over Rs. 10,000 need to be intimated
(d) Nothing, since he already owns the house
Ans. (c) Intimation, since repairs over Rs. 10,000 need to be intimated — Explanation: The 1990 instructions require intimation of repairs to immovable property costing over Rs. 10,000. [Ref: Rule 18; GoI decision dt 27.11.1990]
20. A Government servant bids for and wins a Government-auctioned vehicle in his own office's auction. Which instruction does this violate?
(a) The 11.09.1978 instructions on spouse's funds
(b) The 21.01.1958 instructions barring bidding at Government auctions
(c) The 24.01.1994 instructions on annual returns
(d) The 25.03.1967 instructions on clubbing
Ans. (b) The 21.01.1958 instructions barring bidding at Government auctions — Explanation: The 1958 instructions bar Government servants from bidding at Government auctions. [Ref: Rule 18; GoI decision dt 21.01.1958]
21. Consider these statements about Government decisions under Rule 18: 1. Pagri payments are corrupt practice. 2. GPA transactions are outside Rule 18. 3. Several purchases on the same bill are one transaction. Which are correct?
(a) 2 and 3 only
(b) 1, 2 and 3
(c) 1 and 3 only
(d) 1 and 2 only
Ans. (c) 1 and 3 only — Explanation: Pagri is treated as corrupt practice and clubbed purchases are one transaction. GPA transactions are treated as acquisition of immovable property. [Ref: Rule 18; GoI decisions]
22. Which pairing of a Rule 18 decision with its date is correct?
(a) Power of Attorney transactions – 29.12.1998
(b) Fixed deposits – 19.11.1965
(c) Pagri – 12.05.1982
(d) Annual returns – 21.01.1958
Ans. (a) Power of Attorney transactions – 29.12.1998 — Explanation: GPA transactions is 1998. Pagri is 1965, fixed deposits 1982, annual returns 1994, and auctions 1958. [Ref: Rule 18; GoI decisions]
23. A Government servant pays a large premium to a landlord to get a shop for his wife's business. Which instruction is directly relevant?
(a) The 1968 instructions on Heads of Department
(b) The 1998 instructions on Power of Attorney
(c) The 1976 instructions on chit funds
(d) The 1965 instructions treating pagri as corrupt practice
Ans. (d) The 1965 instructions treating pagri as corrupt practice — Explanation: Payment of pagri to obtain tenancy is treated as corrupt practice by the 19.11.1965 instructions. [Ref: Rule 18; GoI decision dt 19.11.1965]
24. Government instructions of 24.01.1994 relate to:
(a) Auctions
(b) Annual immovable property returns by Group 'A' and 'B' officers
(c) Disproportionate assets
(d) Repairs over Rs. 10,000
Ans. (b) Annual immovable property returns by Group 'A' and 'B' officers — Explanation: The 1994 instructions deal with annual immovable property returns, due by 31st January. [Ref: Rule 18(1)(ii); GoI decision dt 24.01.1994]
25. Why do Government instructions discourage ex post facto sanction for property transactions?
(a) Because it costs more
(b) Because ex post facto sanction is illegal in all cases
(c) Because it is only for Group 'A'
(d) Because the rules require intimation or sanction before the transaction, so the authority can examine it in advance
Ans. (d) Because the rules require intimation or sanction before the transaction, so the authority can examine it in advance — Explanation: Previous knowledge and previous sanction exist so that the authority can examine the transaction before it is completed. Seeking approval afterwards defeats that purpose. [Ref: Rule 18; GoI decision dt 26.06.1961]
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These questions are prepared for practice from the text of the CCS (Conduct) Rules, 1964 and related Government of India instructions. Always check the latest DoPT orders before relying on any point for official decisions.