Statement 1 is correct. All India Service officers are recruited by the Central Government but are allotted to various State Cadres, where they serve under the respective State Government.
The immediate control over these officers, including transfers, postings, and day-to-day administration, rests with the State Government to which they are allotted.
However, the ultimate control, pertaining to major disciplinary actions, service rules, training, and overall policy matters, lies with the Central Government. This dual control mechanism ensures both administrative efficiency at the state level and adherence to national policies and standards.
The Department of Personnel and Training (DoPT) under the Ministry of Personnel, Public Grievances and Pensions is the nodal agency for the Indian Administrative Service (IAS). The Ministry of Home Affairs is the cadre controlling authority for the Indian Police Service (IPS), and the Ministry of Environment, Forest and Climate Change is for the Indian Forest Service (IFS).