Section 189: Railway servants not to engage in trade

Text of Section 189:

A railway servant shall not:

1. Engage in Auction Activities:
   • Purchase or bid for any property put to auction under Section 83, Section 84, Section 85, or Section 90 of this Act, either:
     • In their own name or by an agent.
     • In the name of another person.
     • Jointly or in shares with others.
2. Engage in Trade in Contravention of Railway Directions:
   • A railway servant is prohibited from engaging in any trade if it is against the directions issued by the railway administration in this regard.

Explanation of Section 189:

Overview:

Section 189 prohibits railway servants from participating in trade or business that could result in conflicts of interest or undermine their duties as public servants. This ensures that railway employees maintain impartiality and avoid financial activities that might compromise their roles in the railway administration.

Key Provisions:

1. Prohibition on Bidding or Purchasing Auctioned Property:
   • Railway employees are forbidden from purchasing or bidding for property that is auctioned under specific sections (83, 84, 85, 90) of the Railway Act.
   • This restriction is intended to prevent any conflict of interest or abuse of position, as railway employees might have access to information or opportunities that could give them an unfair advantage in such auctions.
2. Engagement in Trade or Business:
   • Railway employees cannot engage in trade or business unless explicitly authorized by the railway administration.
   • This prevents railway servants from pursuing private commercial activities that might conflict with their duties or create potential for corruption and nepotism.
   • It ensures that railway employees focus on their responsibilities within the railway system and do not use their positions for personal gain in business ventures.

Practical Implications:

1. Avoiding Conflicts of Interest:
   • The primary goal of this section is to ensure that railway servants act impartially and do not use their position or insider knowledge for personal or financial gain. By prohibiting bidding in auctions or engaging in business, it mitigates potential conflicts of interest.
2. Ethical Conduct:
   • This section ensures that railway employees uphold high ethical standards in their professional roles. Engaging in private business dealings, especially in areas related to railway functions, could lead to unethical practices, such as insider trading, bribery, or fraud.
3. Accountability:
   • Railway administrations can monitor and ensure that employees adhere to these restrictions. Violations of this section could lead to disciplinary action, including suspension or termination of employment.
4. Maintaining Public Trust:
   • By restricting railway employees from engaging in certain types of business and auction activities, this section helps maintain public trust in the integrity of the railway administration. It ensures that the railway service is not undermined by any employee’s personal financial interests.

Conclusion:

Section 189 serves to protect the integrity and impartiality of railway servants by prohibiting them from bidding on certain auctioned property and from engaging in business or trade unless permitted by the railway administration. This ensures that railway employees are not distracted or influenced by personal commercial interests and can carry out their duties effectively and without bias.