snkl-terrorIs it legal for a Govt employee to lend money for interest at high rates?
From India, Chennai
PROFESSIONALS AND BUSINESSES PARTICIPATING IN DISCUSSION
Asso.prof.(commerce & Management)
loginmiraclelogisticsSuch transactions are conducted without proper documentation, sometimes using signed blank papers between known persons. There are certain regulations & act passed by the TN govt. to curb such dealings fleecing poor & innocent borrowers imposing too high rate of interest say 20,30% p.m. Govt.employees are governed by the Conduct & Discipline Rules of the state which prohibits such activities as a side business.
Also please read Tamilnadu Money Lending Act 1957 and the Tamilnadu Prohibition of Charging Exorbitant Interest Act.
From India, Bangalore
saiconsultA govt. employee is bound by the Civil Service Conduct rules framed by the State Govt.concerned.Normally doing business outside the scope of employment is prohibited by service rules. You need to go through the service rules applicable to govt.employees of your State.
HR & Labour Relations Consultant
From India, Mumbai