Vigilance cases alleging corrupt practices may involve investigation by the Central Bureau of Investigation, the Central Vigilance Commission, or another approved agency. Where a prima facie case arises, advice may be sought on disciplinary action, and the enquiry may be entrusted to a Commissioner for Departmental Enquiries or a nominated person. The Inquiry Officer's report is referred for advice on charges and penalties, while the competent authority determines the penalty after considering that advice. Corrupt practices include criminal misconduct and improper or corrupt exercise of powers.

Employee suspension may be ordered where disciplinary proceedings are contemplated or pending, or a criminal case is under investigation, inquiry or trial. Deemed suspension follows detention exceeding 48 hours or conviction resulting in imprisonment where service is not immediately terminated. Suspension may be modified or revoked, is ordinarily limited to 90 days, and may be exceptionally extended for a further limited period. Subsistence allowance is payable during suspension, with an enhanced rate where inquiry delay is not attributable to the employee. Where no disciplinary penalty is imposed, the employee receives the difference between subsistence allowance and ordinary emoluments.

Special disciplinary procedure permits the Competent Authority to impose any prescribed penalty despite ordinary procedural requirements where facts are established by a court of law or court martial, the employee has absconded, communication is impracticable, or other difficulties prevent compliance. Procedural requirements may be waived only without injustice to the employee, and written reasons are mandatory for every complete or partial waiver.

Common disciplinary proceedings may be directed by the Competent Authority where a case concerns two or more employees. The disciplinary proceedings against all such employees may then be conducted jointly through common proceedings.

Communication of disciplinary orders requires the Competent Authority's orders to be communicated to the employee concerned. Where an inquiry report exists, the employee must also be supplied with a copy of the report.

Minor-penalty proceedings require written notice of alleged lapses and an opportunity for the employee to submit a written defence within the specified period, subject to any extension granted by the Competent Authority. Any defence must be considered before an order is passed. If an inquiry is considered necessary, the procedure for imposing a major penalty applies. The record must include the imputations, defence statement, if any, and the Competent Authority's reasoned order.

The Competent Authority may remit a case for fresh or further inquiry, with written reasons, where it is not the Inquiry Officer. It must record reasons before disagreeing with findings on any charge and may make its own findings where the evidence on record is sufficient. Based on findings concerning all or any charges, it may impose an applicable disciplinary penalty or, where no penalty is warranted, exonerate the employee.

Major penalties may be imposed only after an inquiry. The Competent Authority must communicate definite charges and supporting allegations, allow a written defence, and may appoint an eligible Inquiry Officer and Presenting Officer. The employee may obtain assistance from another employee, inspect relevant documents, seek production of evidence, cross-examine witnesses, present a defence and file a written brief. Non-compliance may lead to an ex parte inquiry. The Inquiry Officer must prepare a reasoned report assessing evidence and recording findings on each charge, subject to safeguards where a different charge emerges.

Regulation 79 prescribes minor and major disciplinary penalties for employees who breach regulations or instructions, act negligently, breach discipline, or commit misconduct. Minor penalties include censure, withholding promotion or increments, recovery of pecuniary loss, and limited non-cumulative pay reduction. Major penalties include specified pay reduction, reduction in grade, compulsory retirement, removal, and dismissal. It also excludes specified actions from the meaning of penalty, including certain increment withholding, non-promotion, reversion, termination under employment terms, medical termination, and retirement.

Workplace sexual harassment of any woman employee is prohibited, including unwelcome physical, verbal or non-verbal sexual conduct. Complaints are handled by a Complaints Committee chaired by a senior woman employee and having specified male, women and non-governmental organisation representation. The Committee may set its procedure, close motivated or frivolous complaints after intimation, or initiate a reasoned inquiry. It is deemed to be the inquiry officer for disciplinary purposes, may provide counselling or support services, and submits an inquiry report. The Competent Authority initiates disciplinary proceedings and imposes penalties for proven violations.

Regulation 78 prohibits employees from misusing Authority-granted residential accommodation, facilities or concessions. Employees may not sub-let, lease, or allow another person to occupy allotted residential accommodation without the Authority's express permission. Following determination or cancellation of an allotment, the employee must vacate within the period specified by the allotting authority.

Employees must not make statements of fact or opinion that adversely criticise a current or recent policy or action of the Authority or Government. The restriction covers broadcasts, electronic media, publications made under any name or anonymously, press communications, and public utterances. It does not apply to statements or views made in an official capacity or while performing assigned duties.

Employee disciplinary rules prohibit an employee from addressing an appeal, representation or petition to any outside authority or person concerning a matter relating to the employee's service in the Authority. Such conduct constitutes a breach of discipline.

Regulation 75 requires an employee to obtain prior sanction from the competent authority before approaching a court or the press to vindicate an official act subjected to adverse criticism or defamatory attack. It does not restrict action to vindicate the employee's private character or acts done in a private capacity, but any such action must be reported to the competent authority.

Arrest for debt, criminal charges, or detention under legal process results in deemed suspension from the date of arrest or detention, with suspension payment subject to later adjustment. The period is treated as duty on acquittal of all blame or where no improper conduct caused the detention. Imprisonment for debt or conviction involving gross moral turpitude or affecting official duties may attract dismissal or another prescribed penalty. Reinstatement follows where a higher court sets aside the conviction and acquits the employee.

Employees must manage private affairs to avoid habitual indebtedness or insolvency and promptly report debt-recovery or insolvency proceedings to the competent authority. Employees in debt must file signed half-yearly financial statements identifying corrective measures. False statements, failure to submit statements, inability to clear debts within a reasonable time, or seeking insolvency-court protection may attract disciplinary action. Debt and inability to liquidate it are determined by prescribed liability, income, personal-resource, expense, and time-based criteria.

Employees must comply with laws concerning intoxicating drinks or drugs applicable at their place of posting. They must ensure that intoxicating drinks or drugs do not affect duty performance, must not appear intoxicated in a public place, and must not habitually consume intoxicating drinks or drugs in excess. Public places include qualifying clubs, bars, restaurants, public conveyances, and other places accessible to the public.

Employee participation in auctions conducted by the Authority for sale of movable or immovable property pursuant to recovery proceedings is prohibited. The restriction applies to both direct and indirect participation.

Section 50 deems capital gains on transfer of depreciable assets to be short-term only for computing those gains. The deeming fiction does not change the underlying character of a depreciable asset held for more than three years as a long-term capital asset. Accordingly, under Section 74, brought-forward long-term capital loss may be set off against the capital gain computed under Section 50 on transfer of such a long-term depreciable asset.

Employees must not misuse their official position in dealings with outside agencies, market intermediaries or the public. Official clarifications should ordinarily be communicated in writing. Office facilities and official letterheads must not be used to seek allotment of shares or securities for family members, friends or associates. Employees must avoid activities, favours or physical facilities that may compromise integrity and fairness in performing official duties. Use of official position for personal favour for oneself, family members, relatives or friends is strictly prohibited.