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Rule 150 - Supplier Accountability | KartavyaDesk

GFR 2017

Original Rule Text

( i v ) Performance and conduct of every registered supplier is to be watched by the concerned Ministry or Department. The registered supplier(s) are liable to be removed from the list of approved suppliers if they fail to abide by the terms and conditions of the registration or fail to supply the goods on time or supply substandard goods or make any false declaration to any Government agency or for any ground which, in the opinion of the Government, is not in public interest.

What This Means

Rule 150 of the General Financial Rules (GFR), 2017, focuses on maintaining the integrity and reliability of suppliers registered with the government. Essentially, it empowers government ministries and departments to monitor the performance and behavior of these registered suppliers. This rule ensures that suppliers adhere to the agreed-upon terms and conditions, deliver goods on time, and maintain quality standards. Think of it as a quality control mechanism for government procurement.

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.

Key Points

  • •Ministries/Departments are responsible for monitoring registered supplier performance.
  • •Suppliers can be removed from the approved list for non-compliance.
  • •Grounds for removal include late delivery, substandard goods, and false declarations.
  • •Removal can also occur if the supplier's actions are deemed against public interest.
  • •This rule aims to ensure accountability and quality in government procurement.

Practical Example

The Ministry of Textiles registered 'Silk Weaves Ltd.' as a supplier of silk fabric. After several orders, the Ministry noticed that Silk Weaves Ltd. consistently delivered fabric two weeks past the agreed-upon deadline. Furthermore, an independent quality check revealed that the fabric's thread count was significantly lower than specified in the contract, costing the government approximately ₹5,00,000 in potential losses. Based on these violations of the terms and conditions, the Ministry initiated proceedings to remove Silk Weaves Ltd. from the list of approved suppliers, citing Rule 150 of the GFR, 2017.

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.

Frequently Asked Questions

What constitutes 'failure to abide by the terms and conditions' under Rule 150?▼
This includes any deviation from the agreed-upon specifications, delivery schedules, quality standards, or contractual obligations outlined in the registration agreement.
Who makes the final decision regarding the removal of a supplier?▼
The concerned Ministry or Department responsible for the supplier's registration makes the final decision, based on evidence and due process.
Can a supplier appeal their removal from the approved list?▼
The GFR doesn't explicitly detail an appeal process within Rule 150. However, general principles of natural justice would likely require the supplier to be given an opportunity to present their case before removal.
Does Rule 150 apply to all types of government procurement?▼
Rule 150 applies to all procurements involving registered suppliers. The specific registration process might vary depending on the nature of the goods or services being procured.
What is considered 'public interest' in the context of Rule 150?▼
'Public interest' is a broad term, but it generally refers to actions that could harm the government's reputation, financial stability, or the well-being of citizens. This could include unethical business practices or involvement in activities that compromise national security.

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.

Test Your Knowledge

Question 1 of 3

According to Rule 150 of GFR 2017, which entity is primarily responsible for monitoring the performance and conduct of registered suppliers?

Related Rules

Rule 271General Financial Rules 2017 (amended July 2024) - Rule 271 - Chapter 10Rule 109General Financial Rules 2017 (amended July 2024) - Rule 109Rule 146General Financial Rules 2017 (amended July 2024) - Rule 146 - Chapter 6Rule 169General Financial Rules 2017 (amended July 2024) - Rule 169 - Chapter 6Rule 215General Financial Rules 2017 (amended July 2024) - Rule 215 - Chapter 6

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