CHAPTER XI
SERVICE UNDER LOCAL FUNDS
11.1. Government employees paid from local funds which are administered by Government are subject to the provisions of Chapter I to IX and XII to XIV of these rules.
Note 1.–Employees of local funds administered by Government who are not paid from consolidated fund by the State and are, therefore, not Government employees are subject to the provisions of Chapter I to IX of the rules.
Note 2.–The expression “Local Funds which are administered by Government”, means funds administered by bodies which by law or rule having the force of law come under the control of Government in regard to proceedings generally, and not merely in regard to specific matters, such as the sanctioning of the budget or sanction to the creation or filling up of particular posts or the enactment of leave, pensions or similar rules; in other words it means funds over whose expenditure Government retains complete and direct control.
11.2. The transfer of Government employees to service under local funds which are not administered by Government will be regulated by the rules in Chapter X.
11.3. Persons transferred to Government service from a local fund which is not administered by Government will be treated as joining a first post under Government, and their previous service will not count as duty performed. A competent authority may, however, allow previous service in such cases to count as duty performed on such terms as it thinks fit.