CHHATTISHGARH STATE MARKETING

CORPORATION LITMITED
CODE OF PREVENTION AND DETECTION OF FRAUDULENT ACTS IN
CHHATTISGARHSTATE MARKETING CORPORATION LIMITED – 2017 (THE
“CSMCL CODE”)

A Code to facilitate the development of controls that will aid in the

prevention and detection of fraud against Chhattisgarh State Marketing
Corporation Limited (CSMCL or the Company) and to promote consistent
organizational behavior by providing guidelines and assigning responsibility
for the development of controls for anti-fraud activities, conduct of
investigations on fraud or suspected fraud activities, and to prescribe
appropriate disciplinary action.
Whereas the Board of Directors of CSMCL (herein after called the Board for
brevity) are particular that the administration and the functioning of CSMCL
shall be characterized by sincerity and honesty, without scope for any
fraudulent activities,
Whereas it is found desirable to inculcate a culture which would keep CSMCL
away from fraudulent acts and facilitate detection of Fraud and its prevention,
Whereas the Board desires to inculcate value systems in the day-to-day
administration and in all dealings with customers, contractors, and others in
connection with the affairs of CSMCL, and
Whereas the Board has decided to provide a system for prevention and
detection of fraud and for reporting and investigating fraud, to its logical
conclusion,
Be it promulgated by the Board as follows:
1(a). This Code shall be called Code of Prevention and Detection of Fraudulent
Acts in Chhattisgarh State Marketing Corporation Limited 2017.
1(b). It shall come into force from the date, as may be prescribed by the Board.

2. Definition

(a) Person includes employees and entities.

(b) Employee includes full time employees, part time employees, persons
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 engaged on ad-hoc, or temporary, or casual, or contract basis,
individuals on deputation from the Government (Central/State) and
other organizations, and individuals on probation or under- training,
including ex-employees for the purpose of this Code only.
(c) Entity includes advisers, bidders, lenders, borrowers, consultants,
customers, contractors, dealers, sellers, service providers, shareholders,
suppliers, vendors, outside agencies, or their representatives, employees
of such agencies and/or any other parties, other parties with a business
relationship with CSMCL, any individuals or body or agency not
having any direct transaction with CSMCL but their acts causing
monetary loss or adversely affecting CSMCLs business or damage of
any sort or loss of reputation or of good will of CSMCL.
(d) Enquiry Officer means such officer appointed by the Management under
Clause 6(h) of this Code.
(e) Fraud includes wrongful or criminal deception, willful acts, omissions,
concealments of fact, abuse of power or any other acts fitted to deceive
committed by a Person (either acting individually or in combination with
other Persons) with intent to cause wrongful gain to self or to any other
entity and/or loss to CSMCL or injury to CSMCL s interests (including
CSMCL s reputation). Abetment of any act mentioned above is also
Fraud . The above acts constitute Fraud irrespective of whether they
actually result in any wrongful gain or loss.
The following acts are illustrative and are not exhaustive of Fraud :
i. Misappropriation or embezzlement of funds/cash, securities, products
or stock/materials of CSMCL, supplies or other assets by any means
etc.

ii. Conniving or colluding with external agencies including customers,

dealers, transporters, contractors or vendors or acting on his own in
diverting/resale/sale at premium (including MRP violation)/water
mixing/adulteration/loose sales of products in which CSMCL has
business interest.

iii. Forgery or unauthorized alteration of any document of CSMCL or that

in possession of CSMCL or of account belonging to CSMCL.
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iv. Forgery or unauthorised alteration of cheque, bank draft, e-banking
transaction(s), or any other financial instrument, etc.

v. Making false records such as pay-rolls, removing the documents from

files and/or replacing it by a fraudulent note etc., or tampering with
such records

vi. Willful suppression, alteration or manipulation of facts or deception in

matters of appointment, placements, submission of reports, tender
committee recommendations, sales records, undue claiming of
benefits/perks etc. including rendering of incomplete or inaccurate
reports/accounts/records with intention to cause harm to the Company
s interests and/or as a result of which a wrongful gain(s) is/are made to
one and wrongful loss(s) to the others or CSMCL

vii. Utilizing funds or equipment or materials or any other assets of CSMCL

for personal or other than approved official purposes

viii. Authorizing, effecting or receiving payments for goods/services not

supplied as per the specified quality and quantity or for inferior
goods/services which are not as per the specified quality and quantity

ix. Destruction, disposition, relocation, damage or removal of records,

equipment, buildings, machinery or any other assets of the Company or
assets in which the Company has interest, with an ulterior motive to
manipulate and misrepresent the facts, as a result of which objective
assessment/decision is hampered or the Company s interests are
adversely affected.

x. Influencing the employees in the matters of recruitment, tender

finalisation and payments to Vendors and Contractors.

xi. Submitting false/forged documents by the tenderers/ vendors/ suppliers/

consultants/while submitting their offer for contracting.

xii. Manipulating data or recording false data in test reports of materials or

constructed works.

xiii. Coercion in doing any act contrary to the principles, procedures,

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 practices of the Company, leading to disruption in normal activities or
having direct or indirect bearing in business activities.

xiv. Making available Company documents/files/papers/email/

communiqués for other parties outside CSMCL, to be used for their gain
and/or against the interests of CSMCL

xv. Conniving at or colluding with outside elements including dealers,

vendors, or any others, to adversely affect tendering or purchase or
operational processes so as to cause loss of income or reduction in
earnings of CSMCL through cartel formations or deliberate under/over
quoting of rates as applicable.

xvi. Profiteering as a result of insider knowledge of Company activities.

xvii. Accepting or seeking any benefit from contractors, vendors, lenders,

borrowers, customers and persons providing services/ materials to
CSMCL.

xviii. Manipulating, making wrong or delayed entries causing damage,

delaying or unauthorized interfering with electronic records, or
electronic data processing systems in any way This includes the e-
payment, e-tendering and e-auction systems, the Company websites or
networks or computers and emails.

xix. Irregularities or deliberate inaccuracies in any kind of report, which may

lead to distortion of facts and adversely affect the process of decision
making.

xx. Irregularity, delay or omission in recording and reporting financial

transactions.

xxi. Willfully causing loss of revenue or reputation of the Company in any

manner, with or without getting any personal benefit in the process.

xxii. Disclosing confidential and proprietary information to the parties to

whom the information are not meant for.

xxiii. Using or permitting use of unapproved/substandard materials or

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 unapproved construction methods in deviation from approved designs
that are likely to affect durability of structures.

xxiv. Any other dishonest or fraudulent act that falls under the gamut of anti-
organizational fraud or corruption related activity and considered by the
Management to be adverse to the interests of the Company.
(f) Other irregularities include:
i. Irregularities concerning moral, ethical, behavioral conduct of the
employees.

ii. Non-maintenance of required books of accounts/records/

returns/documents, up-to-date, as per the Retail Vending Manual and
instructions issued from time to time, at retail shops and at depots.

iii. Non-furnishing of required books of accounts/records/

returns/documents, as per the Retail Vending Manual and instructions
issued from time to time, at retail shops and at depots to supervisory
officials and/or auditors (internal/external/CAG) and/or vigilance
team/squad as and when demanded.

iv. Effecting sale without bills (manual or electronic).

v. The Managing Director shall be the Competent Authority in case any

question arises as to whether an action constitutes Fraud or Other
Irregularity.

(g) Corruption means dishonest or fraudulent conduct or efforts to influence

and/or the abuse of authority by giving or accepting inducement or favour
or consideration or illegal gratification or bribe for personal advantage.

(h) Nodal Officer means officer designated by the Managing Director for the
purpose of receiving complaints and investigating Fraud or Other
Irregularity. Until such designation is made by the Managing Director, the
respective District Manager in his District and the respective Senior
Regional Managers in their Region shall be the Nodal Officer . In addition,
Chief Vigilance Officer and other official nominated by the Managing
Director are Nodal Officer . The designation and contact details of Nodal
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 Officers shall be displayed in all offices, depots, retail vending shops of
CSMCL and in the website of CSMCL.
. (i) Controlling Officer means officer under whom the concerned employee
works (e.g., District Manager in case of Shop Personnel/staff of DM
Office).
. (j) Immediately means within 24hours.
. (k) He includes She .
. (l) Record includes books/documents/data/file/paper/assets and/or
electronically kept record.
3. Vigilance Department
. (a) The Board of CSMCL is the Competent Authority to notify the name and
designation of officer who will discharge the duties and responsibilities
of Chief Vigilance Officer .
. (b) A separate Vigilance Department headed by a Chief Vigilance Officer
(CVO) shall oversee the vigilance/anti-fraud functions in CSMCL.
. (c) Chief Vigilance Officer (CVO) will directly report to the Managing
Director and to the Board of CSMCL as and when necessary.
. (d) The Vigilance Department will be provided with the required Officers
and Staff who have unblemished service record with other necessary
infrastructural facilities for assisting CVO to discharge the duties and
responsibilities of Chief Vigilance Officer . The Officers and staff will
be posted to Vigilance Department on tenure basis from other
department/wing of CSMCL who will have tenure of 3 years and
extendable for a further period of 2 years at the discretion of CSMCL.
Officers on deputation from Chhattisgarh Government or Government
of India or Public Sector Undertakings (State/Central) may also be
considered for posting in the Vigilance Department to work under CVO
who will also have a tenure of 3 years and extendable for a further period
of 2 years at the discretion of CSMCL.
(e) Managing Director of CSMCL is the Competent Authority for
appointing the Officers and staff in Vigilance Department. The
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 appointment shall be done in consultation with CVO.
4. Reporting Procedures
(a) Any person, as soon as he comes to know of any Fraud or suspected Fraud
or any Other Irregularities in or in relation to CSMCL, must report such
incident
(b) Similarly, any person outside CSMCL or any person not related to any
transaction of CSMCL may also report occurrence of Fraud or suspected
Fraud or any Other Irregularities in relation to CSMCL.
(c) Such reporting shall be made to the Nodal Officer designated for this
purpose. If, however, there is shortage of time or urgent nature such
reporting should be made to the immediate Controlling Officer whose duty
shall be to ensure that the input received is immediately communicated to
the Nodal Officer.
(d) As soon as it is learnt, either by way of reporting or on his own knowledge,
that a Fraud or suspected Fraud or Other Irregularity has taken or is likely
to take place the Controlling Officer and/or Nodal officer should
immediately inform the Vigilance Department about the incident.
(e) Anonymous / Pseudonymous complaints received will not be entertained
as a general rule. However, if the complaint is supported by any verifiable
facts/evidence, the same may be acted upon by the Nodal Officer with
approval of Vigilance Department. Further, a record of reasons to be made
in writing, for not taking any action on such anonymous complaints/reports,
will be maintained by the Nodal Officer.
(f) The reporting of the Fraud, Other Irregularity should normally be in writing.
The reporting in writing may be communicated in person, or through an
authorized representative, or by post/courier, or by email, or SMS to the
Nodal Officer.
(g) In case the reporter is not willing to furnish a written complaint but is in a
position to give sequential and specific transaction of Fraud/suspected
Fraud or Other Irregularity then the controlling officer receiving the
information/Nodal Officer should record such details in writing as narrated
by the reporter and also maintain the details about the identity of the
official/employee/other person reporting such incident.
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(h) Reports can be made in confidence and the person to whom the Fraud,
suspected Fraud, Other Irregularity has been reported must maintain the
confidentiality with respect to the reporter and such matter should under no
circumstances be discussed or disclosed with any unauthorized person.
(i) The Nodal Officer and/or Controlling Officer and/or Vigilance Department
and/or any official in CSMCL who is in receipt of such report shall
maintain the confidentiality about the identity of the reporting individual
and under no circumstances would discuss it with any unauthorized person.

(j) CSMCL will not tolerate any form of retaliation against individuals
providing information concerning Fraud, suspected Fraud, or Other
Irregularity. The Corporation shall provide protection to the
complainant/individual providing information concerning fraud or
suspected fraud against victimization.
(k) The employee who reports suspected dishonest or fraudulent activity
should not attempt to personally conduct investigations or
interviews/interrogations related to any suspected fraudulent act.
(l) The reporting individual should observe strict confidentiality.
(m)The reporting individual should not contact the suspected individual in an
effort to determine facts or demand restitution.
(n) The reporting individual should not discuss the case, facts, suspicions, or
allegations with anyone unless specifically asked to do so by the Nodal
Officer or the Vigilance Department.
(o) All reports the Fraud, suspected Fraud, Other Irregularity shall be handled
with utmost speed and shall be coordinated by the Vigilance Department.
(p) Nodal officer(s)/Officer receiving input about any suspected fraud shall
act expeditiously upon such reporting and ensure that all relevant records,
documents and other evidence are being immediately taken into custody
and being protected from being tampered with, destroyed or removed by
suspected perpetrators of fraud or by any other official under his influence.
(q) Nodal officer shall forward the complaint concealing the identity of the
complainant. Name of the complainant can be revealed only by the Chief
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 Vigilance Officer with the approval of the Managing Director.
(r) The employee or other complainant may remain anonymous. All inquiries
concerning the activity under investigation from the suspected individual,
his attorney or representative, or any other inquirer should be directed to
the Vigilance Department.
(s) No information concerning the status of an investigation will be disclosed
to the complainant or third party.
5. Investigation Responsibility
(a) It shall be the primary duty and responsibility of the Nodal Officer to
conduct preliminary and final investigation of all Fraud, suspected
Fraud, Other Irregularity. Provided that if the Nodal Officer decides
upon conclusion of his preliminary investigation that he/she cannot
handle investigation of the Fraud, suspected Fraud, Other Irregularity
either due to his limitation and/or competency considering the gravity
of the Fraud, suspected Fraud, Other Irregularity the same must be
immediately informed to the Chief Vigilance Officer who shall take
further action.
(b) Decisions to prosecute in Court of Law or refer the examination results
to the appropriate law enforcement (Police, Directorate of Anti-
Corruption and Vigilance, etc.) and/or regulatory agencies for
independent investigation will be made by the Chief Vigilance Officer
with the approval of the Managing Director. Provided that in case of
misappropriation of cash and/or stock valuing more than ten thousand
rupees, an FIR must be registered with Police within 48 hours by the
concerned Controlling Officers with intimation to Nodal Officer who
shall monitor the progress of the case and send periodical report to the
Chief Vigilance Officer. Provided further that in case of
misappropriation of cash and/or stock valuing less than ten thousand
rupees, an FIR may be registered with Police within 48 hours by the
concerned Controlling Officers, on case to case basis, with intimation
to Nodal Officer, who shall monitor the progress of the case and send
periodical report to the Chief Vigilance Officer.
(c) If the final investigation substantiates that Fraud have occurred, then
there must be appropriate disciplinary action against the fraudster.
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 There shall be zero tolerance in this regard.
(d) Great care must be taken in the investigation of suspected improprieties
or irregularities so as to avoid mistaken accusations or alerting
suspected individuals that an investigation is under way.
6. Investigation Procedure

. (a) CSMCL reserves the right to deploy decoy and other methods to unearth
the fraudulent act of any person based on complaint and the cost of decoy
may be recovered from the fraudster.
. (b) The person concerned shall be informed in writing of the alleged Fraud
giving necessary details to enable him to understand the Fraud alleged
against him and he should be given an opportunity to explain the charges
leveled against him.
. (c) Any communication from CSMCL intended to the employee shall be
received with due acknowledgement. Refusal to receive communication
from CSMCL is a grave misconduct. The communication can be served
either in person or by post to the last known address as per the records
of CSMCL. It is the responsibility of the employee to keep CSMCL in
the know of his latest postal address. In case of refusal to receive the
communication or in case of return of communication without being
served by the postal authorities/courier, substituted service by way of
publication in the local papers will amount to proper and sufficient
service of notice.
. (d) If the charges are grave and if it is found that the continuance of the
employee in service is injurious to the interest of fair
investigation/disciplinary proceedings, he may be suspended pending
enquiry. In such event, he shall be paid subsistence allowance as per
rules.
. (e) When the person does not admit the charges or the Management is not
satisfied with the explanation offered by the person and the charges are
sufficiently grave and serious to warrant a punishment other than
censure, reprimand or warning, the Management shall conduct a
domestic enquiry by any person of its choice.
. (f) At enquiry, the chargesheeted person will be eligible to have the
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 assistance of any person of his choice to assist him. The person who
intends to assist shall give his consent in writing duly attested by the
charged person. However, if the charged person is an employee then he
is entitled to avail the assistance of one of the existing co-employees.
. (g) At the enquiry, the charge sheeted person will be given the fullest
opportunity to cross examine the witness examined on behalf of the
Management and also examine witnesses, if any, on his behalf. It shall
be responsibility of the charged person to bring the witnesses he chooses
to examine on his behalf to the enquiry.
. (h) The Management at its discretion may appoint any employee or an
outsider as Enquiry Officer. The Enquiry Officer shall make or cause to
be made a faithful record of his proceedings of the enquiry and readout
the same to the person. The charged person shall be given a copy of such
record of proceedings on a day to day basis.
. (i) The person and his witness shall appear at the enquiry at the appointed
place, date and time promptly and punctually and answer truthfully all
the questions that may be put to him at the enquiry.
. (j) If the Person, against whom the enquiry is instituted, fails to participate
in the enquiry for a total of three times in spite of proper and sufficient
service of notice, he may be set ex-parte and the enquiry may be
proceeded with and completed in his absence. A maximum gap of three
working days may be given between two adjournments based only on
written request of the person seeking adjournment. Similarly, if a person
leaves the enquiry without the permission of the Enquiry Officer, the
enquiry may be proceeded with and completed in his absence. The
enquiry shall be conducted on day to day basis.
. (k) If the person against whom the enquiry is instituted misbehaves with the
Enquiry Officer or the witnesses or other person(s) associated with the
enquiry, at the enquiry or outside the enquiry, the same shall be viewed
seriously and constitute a grave misconduct.
. (l) Upon the conclusion of the enquiry, the Enquiry Officer will submit to
the Management a report containing his findings after a careful
examination of the proceedings of the enquiry. The report should be a
self-contained speaking report.
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(m)The charge sheeted person will be furnished with a copy of the findings of
the Enquiry Officer after giving him an opportunity to make his representation,
if any.
. (n) Before imposing any punishment, consequent upon the charges proved
at the enquiry, the person shall be given an opportunity to make his
representation against the punishment proposed to be imposed on him.
. (o) While imposing any punishment, the Management shall take into
consideration the gravity of the misconduct proved, the previous record
of service of the employee and any aggravating circumstance that may
exist.
. (p) If an employee is relieved/discharged/dismissed/terminated from service
during the period of his suspension, the employee shall be deemed to
have been relieved/discharged/dismissed/ terminated from service with
effect from the date on which he was placed under suspension / relieved
from duty.
. (q) Any order passed by the Management following out of the disciplinary
proceedings shall be communicated in writing to the employee and shall
be served on him either in person or by registered post with
acknowledgement due to his last known residential address available on
the records of the Management and the communication so sent shall be
complete, proper and sufficient service.
. (r) The Nodal or Enquiry Officer shall maintain complete confidentiality of
the investigation proceedings. To any queries about any pending
investigation or enquiry, the response may be: I am not at liberty to
discuss this matter. Under no circumstances should any reference be
made to the allegation , the crime , the fraud , the forgery , the
misappropriation or any other specific reference.
. (s) After completion of the investigation, due & appropriate action, which
could include administrative action, disciplinary action, civil or criminal
action shall be taken if it is proved that Fraud is committed.
. (t) In the investigation, if it is proved that Fraud is not committed, the matter
shall be closed unless it is shown that some Other Irregularity not
amounting to Fraud has occurred.
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. (u) If the final investigation substantiates that Other Irregular activities have
occurred, then appropriate disciplinary action would ensue.
. (v) Investigation results will not be disclosed or discussed with anyone other
than those who have a legitimate need to know. This is important in order
to avoid damaging the reputations of persons suspected but subsequently
found innocent of wrongful conduct and to protect CSMCL from
potential civil liability.
7. Disciplinary Action
(a) Failure to comply with this Code would attract disciplinary actions in the
following cases:-

i. Person who suspects or discovers fraudulent activity and fails to report the
same as required by this Code or an employee who intentionally reports false
or misleading information.
ii. Person(s) who is/are engaged in any form of Fraud.
(b) Any one of the following punishment or penalty or both may be imposed
on any person for misconduct, proved or admitted by him depending upon the
gravity of the misconduct proved or admitted.
I. In case of employee

i. censure;

ii. withholding of promotion;

iii. stoppage of increment(s) with or without cumulative effect;

iv. suspension from service as punishment;

v. reduction to a lower stage in the time-scale of pay for a period not

exceeding 3 years, without cumulative effect and not adversely affecting
his pension;

vi. Reduction to a lower stage in the time-scale of pay, for a specified period
with further directions as to whether or not the employee will earn
increments of pay during the period of such reduction and whether on
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 the expiry of such period, the reduction will or will not have the effect of
postponing the future increments of his pay;

vii. Reduction to a lower time-scale of pay grade, post or service which shall
ordinarily be a bar to the promotion of the employee to the time-scale
of pay, grade, post or Service from which he was reduced, with or
without further directions regarding conditions of restoration to the
grade of post or service from which the employee was reduced and his
seniority and pay on such restoration to that grade, post or Service;

viii. Compulsory retirement;

ix. Relieving, Discharge or dismissal;

x. Forfeiture of deposits of any type/nature (Earnest Money Deposit,

Security Deposits, Bank Guarantee, etc.). Forfeiture of gratuity after
giving opportunity to the employee for such employee;

xi. Making the employee, his spouse, children, brother, sister, father, mother
of the concerned employee(s) ineligible for any type of
employment/contract with CSMCL;

xii. Adjustment of damages imposed with the incentives, present and that
may accrue in future.

xiii. Sale of stock sold at premium (MRP violation) shall be classified as a

serious offence. The quantum of penalty for such serious offence shall
be prescribed by the Managing Director considering, inter-alia, the
repetition of such serious offence;

xiv. Recovery at the rate of one and a half times of amount of

shortages/excesses, misappropriation, theft of cash and/or stock/any
other asset held at retail vending shops / depots / any other offices of
CSMCL with an interest of 24 per cent per annum from the date of
occurrence or detection whichever is earlier. Where the property
including cash of CSMCL is in the custody or use of more than one
employee, it shall be deemed to have been entrusted to each of them
jointly and severally and accordingly for any loss or damage each of

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 them shall bear loss or damage jointly and/or severally;

xv. Recovery of the whole or part of any pecuniary loss caused to the
Corporation; Provided in case of fraud or suspected fraud involving
officer deputed from Government department or other Public Sector
Undertakings shall be dealt with in accordance with the rules applicable
to him.

II. In case of person other than employee

i. Forfeiture of deposits of any type/nature (EMD, Security Deposits,

Bank Guarantee, etc.)

ii. Black listing for minimum three years or for life time.

iii. Recovery of the whole or part of any pecuniary loss caused to CSMCL.

III. In addition to above, CSMCL reserve right to prosecute the alleged

fraudulent person and initiate appropriate civil or other legal
proceedings to recover any losses suffered by CSMCL or unlawful gains
obtained by other persons in a Court of Law.

8. Responsibility of Controlling Officers for Anti-fraud activities

Each Controlling Officers shall have the responsibility of prevention and
detection of Fraud and for implementing the Code of Prevention and Detection
of Fraudulent Acts in Chhattisgarh State Marketing Corporation Limited 2014
of CSMCL for the department under his area of control. It is the responsibility
of all the Nodal Officers to ensure that there are mechanisms in place within
their area of control to
(a) Familiarize each person with the types of improprieties that might occur in
their area.
(b) Educate persons regarding the measures to be taken for prevention and
detection of fraud.
(c) Create a culture whereby persons are encouraged to report any Fraud or
suspected Fraud which comes to their knowledge, without any fear of
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 victimization.
(d) Promote awareness among the persons of ethical principles subscribed to
by CSMCL through Rules/Standing orders/Manuals.
(e) Developing a fraud risk profile and undertaking a regular review of the
fraud risk associated with each of the key organizational objectives in
order to keep the profile current.
(f) Designing effective control environment of checks and balances to prevent
Fraud.
(g) Devise response plan commensurate to the level of fraud risk identified in
the fraud risk profile.
(h) Making sure that all persons are aware of the Code of Prevention and
Detection of Fraudulent Acts in Chhattisgarh State Marketing
Corporation Limited 2017 and know what their responsibilities are in
relation to combating fraud.
(i) Ensuring that vigorous and prompt investigations are carried out if Fraud
occurs or is suspected.
(j) Taking appropriate legal and/or disciplinary action against perpetrators of
Fraud.
(k) Taking appropriate action to recover assets.
(l) Ensuring that appropriate action to minimize the risk of similar fraud so
ccurring in future.
9. Responsibility of persons for Anti-fraud activities
Every person having transaction with CSMCL is expected and shall be
responsible to ensure that there is no fraudulent act being committed in their
areas of responsibility/control and has the duty and responsibility for:
(a) Acting with propriety in the use of official resources and the handling and
use of public funds which may include but not limited to cash, payments
systems, receipts, supplies, dealing with suppliers, the use of IT
equipment and placing orders and contracts.

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(b) Preventing and detecting Fraud.
(c) Being alert to the possibility that unusual events or transactions could be
indicators of Fraud.
(d) Reporting details immediately to Nodal Officer if they suspect that Fraud
has been committed or see any suspicious fraudulent acts or events.
(e) Cooperating fully with whoever is conducting internal checks or reviews
or fraud investigations.
10. Training on fraud prevention

Management shall be responsible for making out a suitable module for

periodic training of all employees and officers on Fraud prevention.
Properly designed familiarization module will be put in place for all
Management Trainees during their initial training period, including
printed material and Manuals along with Class Room sessions not less
than two hours.
For casual/contract/temporary employees, this Code and related circulars
must be available on the CSMCL website and this aspect duly mentioned
in their contract/appointment letters instructing them to familiarize
themselves with this Code before they start working.
Adequate sets of the Code, manual, and related circulars, orders etc. must
be available in hard copy with all Controlling Officers/Nodal Officers
which they may also be printed out from the website whenever needed.
The job/refresher training courses will include modules on this Code
with all current/extant updates/orders and circulars.
Management may decide to conduct/organize necessary training in this
field to the employee/any individual, who might use or have custody of
any such items or facilities when it is within the scope of their
investigation.
11. Incorporation of this Code in Tender/Contract
(a) Due amendments shall be made in the general conditions of
tender/contracts entered into with CSMCL wherein all bidders/service
providers/vendors/consultants etc. shall be required to certify that they
would adhere to the Code of Prevention and Detection of Fraudulent
Acts in Chhattisgarh State Marketing Corporation Limited 2017 of
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 CSMCL and not indulge or allow anybody else working in their
organization and in CSMCL to indulge in fraudulent activities and would
immediately apprise CSMCL of the fraud/suspected fraud as soon as it
comes to their notice.
(b) In respect of existing contract, the above provision shall be incorporated
by way of amendment within six months from the approval of this Code
by the Board of Directors.
12. Information to Audit Committee and the Board
(a) Vigilance Department shall compile all information relating to anti-fraud
activities undertaken in CSMCL including status of action taken on
Frauds/suspected Frauds reported on quarterly basis and submit the same
to Audit Committee through Managing Director.
(b) All Frauds involving one lakh rupees and above each shall be reported to
the Audit Committee as well as Board of Directors promptly by the
Vigilance Department through Managing Director.
( c ) Vigilance Department shall prepare Annual Activity Report on Anti-Fraud
Activities undertaken in CSMCL and submit the same to Audit Committee
and Board of Directors each year through Managing Director.
13. Administration of the Code
The Managing Director is responsible for the administration, interpretation,
and application of this Code. The Board is responsible for review,
revision/amendment, and monitor administration of this Code. The Code will
be reviewed annually and revised as needed to keep it up-to-date with any
changes in law which may be made in the future.
14. This Code is supplementary
This Code is not in derogatory of any of the existing provisions in any of the
law dealing with prevention, detection, and punishment of fraudulent acts, and
should be deemed to be supplementary to the same.

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