Para 3.7 - Debarment Rules | KartavyaDesk
Original Rule Text
5. Debarment across All Ministries/ Departments: In the following situations, the Ministry/ Department may consider debarring the firm from taking part in any tendering procedure floated by all the Central Government Ministries/ Departments: a) If the bidder has been convicted of an offence (Rule 151 (i) of GFRs, 2017), for debarment upto three years: i) under the Prevention of Corruption Act, 1988, or ii) the Indian Penal Code55 (IPC), 1860 or any other law for the time being in force, for causing any loss of life or property or causing a threat to public health as part of the execution of a public procurement contract. b) The Ministry/ Department concerned should, after obtaining the approval of the Secretary concerned, forward to DoE a self-contained note setting out all the facts of the case and the justification for the proposed debarment, along with all the relevant papers and documents. c) Ministry/ Department, before forwarding the proposal to DoE, must ensure that reasonable opportunity has been given to the concerned firm to represent against such debarment (including a personal hearing if requested by the firm). If DoE realizes that sufficient opportunity has not been given to the firm to represent against the debarment, such debarment requests received from Ministries/ Departments shall be rejected. d) The firm shall remain debarred during the interim period till the final decision is taken by DoE, only in the Ministry/ Department forwarding such proposal. For this purpose, the proposing Ministry shall issue an interim order debarring the firm from taking part in tendering procedures floated by their Ministry/ Department following the procedure laid down in sub-para 3) above. Such order inter-alia must mention that the Government reserves its right to further debar the firm from taking part in any tendering procedure floated across all the Central Government Ministries/ Departments, following due procedure. e) DoE can also give additional opportunity, at their option, to the firm to represent against proposed debarment. DoE can also take suo-moto action to debar the firms in certain circumstances. DoE shall complete the process of Debarment within 12 weeks after receiving the proposal from the concerned Ministry/ Department. f) DoE will issue the necessary orders for debarment for a period not exceeding three years for offences mentioned in Rule 151 (i) of GFRs, 2017, after satisfying itself that the proposed debarment across all the Ministries/ Departments is in accordance with the said rule. This scrutiny is intended to ensure uniformity of treatment in all cases. g) DoE will maintain a list of such debarred firms, which will be displayed on the GeMCentral Public Procurement Portal (CPPP). This list on CPPP shall be applicable to all Ministries/ Departments, Attached and Subordinate Offices, CPSEs, and Autonomous bodies, but in case of doubt, they may confirm it from issuing authority. h) No contract of any kind whatsoever shall be placed on the firm debarred by DoE, including its allied firms, during the period of debarment by any Ministry/ Department/ Attached/Subordinate offices of the Government of India, including autonomous bodies, CPSEs, etc., after the issue of a debarment order.
What This Means
Para 3.7 of the Manual for Procurement of Goods, 2017, outlines the process for debarring a company from participating in government tenders across all ministries and departments. This means if a company is found guilty of certain offenses, like corruption or causing harm during a government contract, it can be banned from bidding on any future government projects. This rule aims to maintain integrity and accountability in government procurement. The debarment can last up to three years.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- •Debarment can occur if a bidder is convicted of corruption or causing harm during a public procurement contract.
- •The concerned Ministry/Department must obtain approval from the Secretary and forward a detailed note to the Department of Expenditure (DoE).
- •The firm must be given a reasonable opportunity to present its case against the debarment, including a personal hearing if requested.
- •The DoE maintains a list of debarred firms, which is displayed on the GeM-CPPP portal.
- •The maximum debarment period is three years.
Practical Example
Imagine a construction company, 'XYZ Builders,' wins a contract to build a bridge for the Ministry of Road Transport and Highways. During construction, their negligence leads to a collapse that injures several workers. An investigation reveals that XYZ Builders bribed officials to get the contract and used substandard materials. Based on these findings, the Ministry, after internal review and Secretary approval, sends a detailed report to the DoE recommending debarment. XYZ Builders is given a chance to present their case, but the evidence is overwhelming. The DoE, after reviewing the case, issues an order debarring XYZ Builders from participating in any government tenders for three years. This debarment is then listed on the GeM-CPPP portal, preventing all government entities from awarding contracts to XYZ Builders during that period.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
What is the maximum period for which a firm can be debarred?▼
Who maintains the list of debarred firms?▼
What happens if a Ministry/Department doesn't give the firm a chance to present its case?▼
Can the DoE initiate debarment proceedings on its own?▼
Is the interim debarment applicable across all ministries?▼
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 Para 3.7 of the Manual for Procurement of Goods, 2017, what is the maximum period for which a firm can be debarred from participating in tendering procedures across all Central Government Ministries/Departments following a conviction under the Prevention of Corruption Act, 1988?
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