Can government employee can give loan to his brother for his business

Yes, you can. There could be no provision in the respecting Conduct Rules preventing such a transaction.

12 lakh and I taken it back within in two years

You have already given and got its refund, as per your post, isn't it? 

There is no legal embargo or infirmity in advancing money by a government employee to needy cousin.

Originally posted by : Muzammil
	12 lakh and I taken it back within in two years

If so, why this query? The posting suggest deeper issues. Please post complete facts.

You have lent and recovered the loan and are facing no problem, then where is the question of facing any legal issue in this regard?

This stupidity is fully permissible under law.

In case you want to enter inti any financial transactip beyond 2 mnths basic pay then you have o inform the deptt.

but 

give this loan as charity 

because 

Money given to friends and relatives is always a charity in the garb of loan which is given in expectation of refund but always taken with intention of non-refund.

Such loan is taken by a person:-

Who lacks business sence and cannot raise funds out of his own business and suddenly wants to be rich.

who cannot raise bank loan because :-

Either

he himself is not creditworthy

Or

 the purpose for which he seeks loan is illegal

or

the purpose for which he seeks loan is not at all commercially viable.

 Who knows he can afford not to refund.
Who trusts his thick skin
Who intends not to refund
Who has made fortification against action of refund.

So he has to find someone who can part with his money. SO he finds a lender near him (friend or relative)

Such loans are given by the persons :-

Who has surplus money.
Who displays and boasts of such surplus money.
Who stupidly believe that there will be a refund.
Fails to realise as to why he alone (not bank) is being contacted for loan.
Who has extreme trust on the debtor
who are either stupid or extremely greedy of the unusual (or illegal) rate of interest.

Such loans are always given

Without documentation.
Without witness
Without guarantor.

Business started by such money  (easy money belonging to other) invariably fails.

Such loans always sink and not refunded.