Vigilance clearance is mandatory for extension of tenure of heads of Public Sector Undertakings and Government Banks

As per existing norms, vigilance clearance is mandatory for extension of tenure of heads of Public Sector Undertakings and Government Banks. Extension of service period: Rajya Sabha Q&A


ANSWERED ON  27.11.2014

Extension of service period

Will the Minister of PERSONNEL,PUBLIC GRIEVANCES AND PENSIONS be pleased to state :-

(a) whether Government proposes not to extend the service period of the heads of PSUs and Government Banks without vigilance clearance; and
(b) if so, the details thereof?



Minister of State in the Ministry of Personnel, Public Grievances and Pensions and Minister of State in the Prime Minister’s Office. (DR. JITENDRA SINGH)

Yes Sir. As per existing norms, vigilance clearance is mandatory for extension of tenure of heads of Public Sector Undertakings and Government Banks. In both Public Sector Undertakings and Government Banks, extension of tenure is granted only till the age of superannuation, which may either be 58 or 60 years as per the rule of the Public Sector Undertaking concerned. In case of Government Banks, the age of superannuation is 60 years uniformly. Cases of extension of tenure in case of heads of Banks are very rare.
In case of Heads of Public Sector Undertakings, if the initial term of 05 years comes to an end prior to his/her date of superannuation, extension of his/her tenure upto the date of superannuation is considered with the approval of the Appointments Committee of the Cabinet (ACC) subject to his/her being free from vigilance angle and meeting the prescribed performance parameters.
Eligible cases of extension of tenure in Schedule ‘A’ and ‘B’ CPSUs are submitted to ACC subject to the incumbent being clear from vigilance angle. The cases where the incumbent does not meet the benchmark or is not free from vigilance angle are also submitted to ACC for non extension as such non extension can be approved by the ACC only. For Schedule ‘C’ & ‘D’ CPSUs, extension can be approved by the Minister-in-charge if the PESB recommendations are accepted in its entirety by the Ministry and there is no deviation from the norms.
It has been observed from past experience that a final decision regarding extension of tenure of a Head in PSU was occasionally delayed due to a spate of complaints being received against the incumbent just prior to completion of his/her initial term of five years and due to delay in obtaining his/her vigilance clearance. To expedite a final decision on extension of tenure of such board level incumbents, Department of Personnel & Training (DoPT) has issued detailed guidelines on 30.10.2014 regarding timelines for different stages of the process and action to be taken in case of complaints or delay in receipt of vigilance clearance.
In terms of the guidelines dated 30.10.2014, the Department concerned should take a conscious decision on whether to extend the term of a Board level appointee at least one year in advance of the completion of his tenure so that adequate time is available to obtain CVC’s clearance. The guidelines further provide that no cognizance should be taken of any complaint which is received within six months prior to the terminal date of the approved tenure of a Board level appointee. Taking into account the vigilance status as on the date six months before the end of the approved tenure of the Board level functionary, the CVC may give its clearance within two months of receiving the reference in this regard from the administrative Ministry/Department.
The guidelines further stipulate that in respect of the cases where CVC clearance is delayed beyond 02 months, merely on account of procedural reasons, and where vigilance clearance has not been explicitly denied by the CVC, the case of extension may be processed for consideration of the ACC without waiting any further. In respect of cases where CVC clearance is awaited beyond the prescribed timeline of two months but there are cases / complaints pending against the officer, the administrative Ministry/Department shall submit for consideration of the ACC, an appropriate proposal at least two months prior to the officer’s approved tenure with
(i) All available information in respect of the complaint;
(ii) Material received from / sent to the CVC, including enquiry report, if any, of the CVO of the Ministry; and
(iii) The comments of the Ministry thereon.
Even though complaints received after the cut-off date shall have no bearing upon the process of extension of tenure and would not prejudice the same, such complaints would be dealt with as per the normal procedure and necessary action shall be taken against the officer concerned if the charges are substantiated at a later date on the basis of an enquiry.
A copy of the aforesaid DoPT guidelines dated 30.10.2014 is placed at ANNEXURE-I. 
Source: Rajyasabha.nic.in

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