Tender Law
Your Legal Partner in Government Tender and Procurement Disputes.
Tender Law in India
Public procurement law in India, GFR 2017, E-procurement, Government E-Marketplace (GeM), CVC guidelines, Bid rigging
Tender law in India governs how government departments, public sector undertakings (PSUs), and statutory bodies procure goods, works, and services. While there is no single central “Tender Act,” the framework is built around constitutional principles of fairness and transparency (Article 14), the General Financial Rules, 2017 (GFR), procurement manuals, and various executive and judicial guidelines. The objective is to ensure that public funds are spent efficiently, competitively, and without corruption or arbitrariness.
Public Procurement in India
Public procurement in India is primarily governed by the General Financial Rules (GFR), 2017, and the Manuals on Procurement for goods, works, and consultancy. These prescribe tendering procedures, evaluation norms, performance securities, and dispute mechanisms. Electronic systems like Government e-Marketplace (GeM) and the Central Public Procurement Portal (CPPP) promote transparency and accessibility.
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Integrity and Oversight Mechanisms
The Central Vigilance Commission (CVC) issues binding guidelines to prevent corruption, mandate the use of integrity pacts, and ensure independent monitoring for high-value tenders.
Judicial Principles and Precedents
Indian courts uphold that government tenders must follow fairness and non-arbitrariness under Article 14 of the Constitution.
Competition and Bid-Rigging Control
The Competition Commission of India (CCI) investigates and penalizes entities involved in bid-rigging.
Why Choose Our Tender Law Services?
Tender law in India represents a comprehensive system combining statutory rules, executive oversight, and judicial safeguards. Through instruments like GFR 2017, GeM, CVC guidelines, and constitutional mandates, the legal framework seeks to uphold transparency, accountability, and fairness in public procurement. As digital procurement and public-private partnerships expand, adherence to these principles remains critical to maintaining public trust and fiscal integrity.
Frequently Asked Questions (FAQs)
What is “tender law” and why is it important in India?
Tender law governs the legal and procedural framework for public procurement , how government departments, PSUs, and local bodies invite, evaluate, and award contracts for goods, works, or services. It ensures transparency, fairness, and competition in the use of public funds.
Can a bidder challenge a tender or its cancellation in court?
Yes. A bidder can challenge a tender, its cancellation, or a re-tender before the High Court under Article 226 of the Constitution, but only on limited grounds, such as mala fides, arbitrariness, discrimination, or violation of natural justice.
What are the legal remedies available if a tender process is unfair or biased?
If a bidder believes that a tender process was unfair, discriminatory, or manipulated, several legal remedies are available. The choice of remedy depends on the stage of the tender and the nature of the grievance, but fairness and public interest remain the guiding principles throughout.
What are the common legal issues in tender disputes?
Typical disputes arise from – Disqualification of bids, Arbitrary evaluation, Cancellation and re-tendering , Blacklisting of contractors , Forfeiture of bid security or performance guarantees.
What role does a tender law lawyer play?
A tender law lawyer assists clients, both bidders and public authorities, through the entire procurement cycle. Essentially, such lawyers ensure that tender processes uphold transparency, legality, and the client’s rights.
Know more about Tender Law in India
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Litigation Corner
Mls Sapphire Media Services vs Indian Oil Corporation Limited
In this case, M/s Sapphire Media Services challenged the Allahabad High Court’s order dated 22nd May 2023, which dismissed their writ petition against Indian Oil Corporation Limited. The Supreme Court admitted the Special Leave Petition (SLP) on 21st June 2023, with a stay application pending. The matter is scheduled for further hearing.
Sapphire Media Services vs Delhi Transport Infrastructure Dev.
Sapphire Media Services filed an application under Section 9 of the Arbitration and Conciliation Act, 1996, seeking interim relief in a dispute related to a media contract with the Delhi Transport Infrastructure Development Corporation. The Delhi High Court examined the matter and provided a judgment based on the facts and legal arguments presented. The details of the judgment are available in the case records.
Ashok Kumar Aggarwal vs Union of India
Ashok Kumar Aggarwal, a senior government official, challenged his compulsory retirement and the subsequent proceedings related to alleged disproportionate assets. The Supreme Court has been hearing the matter, with the latest proceedings on 22nd September 2021, addressing the legality of his retirement and the charges against him.
Mls Proactive In & Out Advertising vs AAI & Ors.
This arbitration related to an advertising contract dispute with the Airports Authority of India. The District Court, Amritsar, supervised the arbitration proceedings and recorded the interim or final orders.