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This is an archive article published on August 21, 1997

Stung by Basu, Govt amends service rules

NEW DELHI, Aug 20: The ongoing war between the Government and Rupert Murdoch-owned STAR TV network has taken a new turn with South Block or...

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NEW DELHI, Aug 20: The ongoing war between the Government and Rupert Murdoch-owned STAR TV network has taken a new turn with South Block ordering a revision of the service rules, making it mandatory for officials to obtain clearance before taking up private employment on retirement even if they choose to forego their pensions.

The Government obviously sees this `lacuna’ in the light of the current tussle between the Ministry of Personnel and STAR TV CEO Rathikant Basu, who was formerly the Director General of Doordarshan and the Electronics Secretary.

Basu has taken the position that since he did not intend to claim his pension benefits, he was under no obligation to seek government approval for his new job. Highly placed sources admitted today that while they have served a strong notice on Basu, under law, there is very little they can do, apart from having the satisfaction of sending him a formal letter denying him the pension.

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The Law Ministry has now been asked to reframe the rules so that every government servant is legally bound to get official sanction for any commercial employment within two years of quitting government service.

But Government spokesmen assert that they are not merely reacting to the STAR episode. They claim to have been worried about the exodus from sensitive departments like Indian Space Research Organisation (ISRO), Defence Research and Development Organisation (DRDO) and Telecommunications. “For some time now, the heads of sensitive departments have been drawing the government’s attention to the fact that many employees are leaving to join commercial firms and foreign research institutions,” admitted Cabinet Secretary T S R Subramaniam. “We do not want to stop people from bettering their prospects but the question of security is involved. Obviously, withholding pension is not an adequate deterrent.”

Following this, the Cabinet Secretary had written a formal letter to Secretary (Personnel) around three months ago, seeking changes in the service rules.

The controversy has created confusion and bitterness in government circles. Those opposed to action against STAR say it will send wrong signals to foreign investors. But the more conservative view is that while no one should be banned from moving, a two-year cooling-off period would prevent competitors from drawing “undue benefits” from state-of-the-art information on government strategies.

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