CHAPTER XIIISERVICE UNDER LOCAL FUNDS
128. Government servants paid from local funds which are administered by the Government are subject to the provisions of Chapters I to XI of these rules.
Audit instruction regarding rule 128
1. Employees of local funds administered by Government who are not paid from general revenues and are therefore not government servants are subject to the provisions of Chapters I to IX of the Fundamental Rules.
2. The expression "local funds which are administered by the government" means funds administered by bodies which by law or rule having the force of law come under the control of the 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, pension or similar rules; in other words, it means funds over whose expenditure the Government retains complete and direct control.
129. The transfer of government servants to service under local funds which are not administered by the Government will be regulated by the rules in Chapter XII.
130. Persons transferred to services or posts under the Government from a local fund which is not administered by the Government will be treated as joining a first post under the Government, and their previous service will not count as duty performed. The Government may, however, allow previous service in such cases to count as duty performed on such terms as it thinks fit.