Regarding buying and developing a commercial property

515 votes

Yes, a state government employee can generally own property and construct a cottage or building in his/her own name. However, if it is intended for commercial use such as homestay, resort, rental cottage, tourism business, etc., service conduct rules of the concerned State Government become important. Most government service rules restrict employees from engaging directly in trade or business without prior permission/intimation from the competent authority. Passive rental income is usually permitted, but actively running a commercial establishment may require departmental approval. You must also ensure: The land zoning and local authority approvals permit commercial/tourism use. Building plan approval and trade/tourism licences are obtained. The activity does not conflict with service conduct rules or create a conflict of interest. Income from such business is properly disclosed in returns/assets declarations if required under service rules. Therefore, before investing, it is advisable to check the applicable State Government Conduct Rules and obtain prior permission or clarification from your department to avoid future disciplinary issues.

Advocate Hemalatha Narayanan LawRato

687 votes

There is no bar on Renting out a property and earning income out of it.... Government Employee running a business by himself may be objectionable as per Service Conditions...Vit owning a commercial property does not come under this Bar....

Advocate Antony A K LawRato