(1) Where an order of suspension is made or disciplinary proceedings initiated against any employee on deputation to the Authority from the Central or State Government or a Public Undertaking or a local authority, the authority lending his services (hereinafter refereed to as the "lending authority") shall forthwith be informed of the circumstances leading to the order of his suspension or the commencement of the disciplinary proceedings as the case may be.
(2) In the light of the findings in the disciplinary proceedings conducted against such employee :
(a) if the disciplinary authority is of the opinion that any of the minor penalties should be imposed on him, it may pass such orders in the case as it deems necessary after consultation with the lending authority;
Provided that in the event of a difference of opinion between the disciplinary authority and the lending authority, the services of the employee shall be replaced at the disposal of the lending authority;
(b) if the disciplinary authority is of the opinion that any of the major penalties should be imposed on him it should replace his services at the disposal of the lending authority and transmit to it the record of proceedings of the inquiry for such action as the lending authority may deem necessary.
(3) If the employee submits in appeal against an order imposing a minor penalty on him under clause (a) of sub-regulation (2) it shall be disposed off after consultation with the lending authority.
Provided that if there is a difference of opinion between the disciplinary authority and the lending authority, the services of the employee shall be placed at the disposal of the lending authority and the record of the proceedings of the case shall be transmitted to that authority for such action as it deems necessary.