Implied transfer power under functional control upheld where employees were treated as on deemed deputation.

Prasar Bharati's transfer power was examined in relation to employees who remained Central Government employees but worked under its functional control. The Act contemplated transfer to the Corporation through a Central Government order under Section 11 and an employee option, but no such order had been issued. The Court treated the long-standing working arrangement as deemed deputation, distinguished it from transfer, and applied the functional test to the employment relationship. In the absence of framed regulations, the Corporation was recognised as having an implied administrative power to transfer employees, and the transfers were found neither arbitrary nor irrational.

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Issues: Whether the Prasar Bharati Corporation had the power to transfer employees who continued to be employees of the Central Government but were working under its functional control.

Analysis: The Act contemplated transfer of Doordarshan and Akashvani employees to the Corporation by an order of the Central Government under Section 11, followed by the employees' option under the statutory scheme. No such order had been passed, yet the employees had been working for a long period under the Corporation's control and supervision, drawing salary from it and performing its functions. The Court distinguished transfer from deputation, held that the situation amounted to deemed deputation, and applied the functional test to the relationship between the parties. In the absence of framed regulations, the Corporation possessed an implied power to transfer employees in the interests of administration, and the transfers in question were neither arbitrary nor irrational.

Conclusion: The Corporation had the power to transfer the respondents, and the challenge to the transfer orders failed.

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