Property declarations are central to the transparency framework of the civil service. Rule 18 requires Government servants to disclose their assets comprehensively — at the start of their career, every year for Group A and B officers, and whenever they buy, sell or otherwise transact in property above a certain value. Failure to disclose, or deliberate concealment, is a serious misconduct that can result in major penalties including dismissal.
Rule 18(1)(i): Initial Return on First Appointment
Every Government servant must, on his first appointment to any service or post, submit a return of assets and liabilities in the prescribed form, giving full particulars of:
- (a) All immovable property inherited, owned, acquired, or held on lease or mortgage — in his own name or in the name of any family member or other person
- (b) Shares, debentures and cash including bank deposits inherited or similarly owned, acquired or held
- (c) Other movable property inherited or similarly owned, acquired or held
- (d) Debts and other liabilities incurred directly or indirectly
Note: Items of movable property worth less than ₹10,000 may be shown as a lump sum. Articles of daily use — clothes, utensils, crockery, books — need not be included at all. Where a Government servant is already in service and is appointed to another civil service or post, a fresh initial return is not required (Note III to Rule 18(1)).
Rule 18(1)(ii): Annual Returns for Group A and B Officers
Every Government servant belonging to Group A or Group B must submit an annual return in the prescribed form giving full particulars of all immovable property inherited, owned, acquired or held on lease or mortgage — in his own name or in the name of any family member or other person. This annual return is due each year and covers only immovable property (not movable property, unlike the initial return).
| Group | Initial Return (Rule 18(1)(i)) | Annual Return (Rule 18(1)(ii)) |
|---|---|---|
| Group A | ✅ Required at first appointment | ✅ Required every year (immovable property) |
| Group B | ✅ Required at first appointment | ✅ Required every year (immovable property) |
| Group C | ✅ Required at first appointment | ❌ Not required (unless directed by Government) |
| Group D | Only if Government directs (Note I) | ❌ Not required |
Rule 18(2): Acquiring or Disposing of Immovable Property
No Government servant shall, except with the previous knowledge of the prescribed authority, acquire or dispose of any immovable property by lease, mortgage, purchase, sale, gift or otherwise — in his own name or in the name of any family member.
Where the transaction is with a person having official dealings with the Government servant, the requirement is elevated to previous sanction (not merely knowledge) of the prescribed authority. This is an important distinction: buying a flat from a real estate developer with whom you have no official dealings requires only prior knowledge of the prescribed authority; buying from a contractor in your department requires prior sanction.
Rule 18(3): Reporting Movable Property Transactions
Where a Government servant enters into a transaction in respect of movable property — either in his own name or in the name of a family member — he must report it to the prescribed authority within one month of the transaction, if the value of the property exceeds two months' basic pay.
Again, if the transaction is with a person having official dealings, prior sanction is required — not merely post-transaction reporting.
What Is Movable Property Under Rule 18?
Explanation I to Rule 18 defines movable property for this rule's purposes:
- Jewellery; insurance policies with annual premia exceeding two months' basic pay; shares, securities and debentures
- All loans (secured or unsecured) advanced or taken by the Government servant
- Motor cars, motorcycles, horses or any other means of conveyance
- Refrigerators, radios, radiograms and television sets
Rule 18(4): General Call for Information
At any time, the Government or the prescribed authority may by general or special order require a Government servant to furnish, within a specified period, a full and complete statement of any movable or immovable property held or acquired by him, on his behalf, or by any family member. Such a statement may, if required, include details of the means and source from which the property was acquired.
Who Is the "Prescribed Authority"?
Explanation II to Rule 18 defines the prescribed authority:
| Group | Prescribed Authority |
|---|---|
| Group A | The Government (unless a lower authority is specifically designated) |
| Group B | Head of Department |
| Group C and D | Head of Office |
| Government servant on foreign service / deputation | The parent department / Ministry to which he is administratively subordinate |
Rule 18-A: Immovable Property Outside India
Rule 18-A adds a separate, stricter requirement: no Government servant shall, except with the previous sanction of the prescribed authority, acquire or dispose of any immovable property situated outside India, or enter into any transaction with a foreigner, foreign Government or foreign organisation in connection with the acquisition or disposal of any immovable property (whether inside or outside India). This rule requires prior sanction — not merely prior knowledge — in every case.
Frequently Asked Questions (FAQ)
Q1. Does a Group C employee need to file an annual property return?
No. The annual return of immovable property under Rule 18(1)(ii) is required only for Group A and Group B employees. Group C employees submit the initial return on first appointment but are not required to file annual returns unless directed by the Government.
Q2. What is the threshold for reporting movable property transactions?
Under Rule 18(3), a Government servant must report any movable property transaction within one month if the value exceeds two months' basic pay. The threshold is dynamic — it changes with the employee's pay level.
Q3. Does a Government servant need prior sanction to buy a house?
The general requirement under Rule 18(2) is prior knowledge of the prescribed authority, not prior sanction. Prior sanction is required only where the transaction involves a person having official dealings with the Government servant. So buying a house from a developer with no official connection needs only prior knowledge of the prescribed authority; buying from a party with official dealings needs prior sanction.
Q4. What counts as 'movable property' under Rule 18?
Explanation I to Rule 18 lists: jewellery; insurance policies with annual premium exceeding two months' basic pay; shares, securities and debentures; all loans (secured or unsecured) advanced or taken; motor cars, motorcycles, horses or any other means of conveyance; and refrigerators, radios, radiograms and television sets. Clothes, utensils, crockery and books need not be individually listed — items under ₹10,000 may be shown as a lump sum.
Related Reading
Official Source / आधिकारिक स्रोत: Central Civil Services (Conduct) Rules, 1964 — Department of Personnel & Training (DoPT). Download full PDF ⬇