Return to Question

Under Indian law, is it allowable for a department (or department head) to bypass the a formal open "request for tender" process, by instead calling limited tender among arbitrary selected venders. Specifically, does this (or is this likely to) violate vigilance rules of central vigilance commission or state vigilance commission, for a state-owned company for generating thermal power?

The company has a official public notice published in its website stating that material and services will be procured through e-tender and directing interested bidders to buy Digital Signature Certificates for participating in the e-tendering process.

However, in one of this company's power plants, procurement is not handled through the open e-tendering process, but instead tender is only available to vendors arbitrarily selected by an official.

Is the "limited tendering" policy described above legal? If not, is it a form of corruption? Could this be evidence of a kickback scheme or other systematic corruption?

Under Indian law, is it allowable for a department (or department head) to bypass the a formal open "request for tender" process, by instead calling limited tender among arbitrary selected venders. Specifically, does this (or is this likely to) violate vigilance rules of central vigilance commission or state vigilance commission, for a state-owned company for generating thermal power?

The company has a official public notice published in its website stating that material and services will be procured through e-tender and interested parties must acquire Digital Signature Certificates from authorized agencies for participating in the e-tendering process and in the said notice there is no mention of value range or type of items or services for which e-tendering is exempted and other methods are to be followed.It is also mentioned in the notice that for any unforeseen eventualities interested parties may follow notice in organization website

However, in one of this company's power plants, procurement is not handled through the open e-tendering process, but instead tender is only available to vendors arbitrarily selected by an official.

Is the "limited tendering" policy described above legal? If not, is it a form of corruption? Could this be evidence of a kickback scheme or other systematic corruption?

This is how a particular boss runs a dept where procurement of information technology related service/goods/items/material without enlisting suppliers in a transparent way by website advertisement or newspaper advertisement but by calling limited tender among arbitrary selected vendors.In a South Asian Commonwealth country's full government company in a particular state of India(specifically in India where there are vigilance guidelines/rules overlooking agencies like central vigilance commission /state vigilance commission for each constituent state) generating thermal power I think this is corrupt practice.So my question is is this activity corrupt or not corrupt specially when in a public notice of the company published in its website signed by the Company director it reads that material and services will be procured through e tender and interested bidders are directed to buy Digital Signature Certificate for participating in e-tendering. However in a power plant of this company without doing any e-tender this procurement is taking place through this corrupted limited tendering process.My question is the existing practice is okay or not that is it corrupt or not because all South Asian countries belonging to the Commonwealth have some vigilance rules regulations.The way he is conducting business is corruption or not .This is my question.I want that some eminent jurist lawyer or law scholar or knowledgeable participant in this forum clear my doubt.I not asking how to frame charges i am just asking if the standard procedure has been compromised corrupted and sabotaged or not that the process does seem to point to larger organised theft or corruption racket within the organisation or not not asking for specific charges i just want that you shed light on the fact or my doubt if in a government organisation that is a company generating thermal power in a Commonwealth country of South Asia if this is happening is this corrupt practice and if this practice points to iceberg of corruption where a ring consisting of high officials constitute organised racket to systematically loot money through cut money because the tendering process becomes noncompetitive nontransparent and invalid because all commonwealth countries have similar rules in this area.I am not asking for activism but soliciting for your knowledge to discern if this is widespread corruption or corrupt practice or it is my delusional belief. I am questioning the legality cum validity and legtimacy of any and all procurement through the process of "limited tendering" described above

Under Indian law, is it allowable for a department (or department head) to bypass the a formal open "request for tender" process, by instead calling limited tender among arbitrary selected venders. Specifically, does this (or is this likely to) violate vigilance rules of central vigilance commission or state vigilance commission, for a state-owned company for generating thermal power?

The company has a official public notice published in its website stating that material and services will be procured through e-tender and directing interested bidders to buy Digital Signature Certificates for participating in the e-tendering process. 

However, in one of this company's power plants, procurement is not handled through the open e-tendering process, but instead tender is only available to vendors arbitrarily selected by an official.

Is the "limited tendering" policy described above legal? If not, is it a form of corruption? Could this be evidence of a kickback scheme or other systematic corruption?

This is how a particular boss runs a dept where procurement of information technology related service/goods/items/material without enlisting suppliers in a transparent way by website advertisement or newspaper advertisement but by calling limited tender among arbitrary selected vendors.In a South Asian Commonwealth country's full government utility sector company in a particular state of India(specifically in India where there are vigilance guidelines/rules overlooking agencies like central vigilance commission /state vigilance commission for each constituent state) . I think this is corrupt practice.So my question is is this activity corrupt or not corrupt specially when in a public notice of the company published in its website signed by the Company director it reads that as material and services will be procured through e tender from a particular date discontinuing manual tendering hence interested bidders intending to provide services and material are directed to buy Digital Signature Certificate for participating in e-tendering(no limit of quantum of money in the bid is mention or type of material or service to be procured is mentioned). However in a power plant of this company without doing any e-tender this procurement is taking place through this corrupted limited tendering process.My question is the existing practice is okay or not that is it corrupt or not because all South Asian countries belonging to the Commonwealth have some vigilance rules regulations.The way he is conducting business is corruption or not .This is my question.I want that some eminent jurist lawyer or law scholar or knowledgeable participant in this forum clear my doubt.I not asking how to frame charges i am just asking if the standard procedure has been compromised corrupted and sabotaged or not that the process does seem to point to larger organised theft or corruption racket within the organisation or not not asking for specific charges i just want that you shed light on the fact or my doubt if in a government organisation that is a company generating thermal power in a Commonwealth country of South Asia if this is happening is this corrupt practice and if this practice points to iceberg of corruption where a ring consisting of high officials constitute organised racket to systematically loot money through cut money because the tendering process becomes noncompetitive nontransparent and invalid because all commonwealth countries have similar rules in this area.I am not asking for activism but soliciting for your knowledge to discern if this is widespread corruption or corrupt practice or it is my delusional belief.

This is how a particular boss runs a dept where procurement of information technology related service/goods/items/material without enlisting suppliers in a transparent way by website advertisement or newspaper advertisement but by calling limited tender among arbitrary selected vendors.In a South Asian Commonwealth country's full government company in a particular state of India(specifically in India where there are vigilance guidelines/rules overlooking agencies like central vigilance commission /state vigilance commission for each constituent state) generating thermal power I think this is corrupt practice.So my question is is this activity corrupt or not corrupt specially when in a public notice of the company published in its website signed by the Company director it reads that material and services will be procured through e tender and interested bidders are directed to buy Digital Signature Certificate for participating in e-tendering. However in a power plant of this company without doing any e-tender this procurement is taking place through this corrupted limited tendering process.My question is the existing practice is okay or not that is it corrupt or not because all South Asian countries belonging to the Commonwealth have some vigilance rules regulations.The way he is conducting business is corruption or not .This is my question.I want that some eminent jurist lawyer or law scholar or knowledgeable participant in this forum clear my doubt.I not asking how to frame charges i am just asking if the standard procedure has been compromised corrupted and sabotaged or not that the process does seem to point to larger organised theft or corruption racket within the organisation or not not asking for specific charges i just want that you shed light on the fact or my doubt if in a government organisation that is a company generating thermal power in a Commonwealth country of South Asia if this is happening is this corrupt practice and if this practice points to iceberg of corruption where a ring consisting of high officials constitute organised racket to systematically loot money through cut money because the tendering process becomes noncompetitive nontransparent and invalid because all commonwealth countries have similar rules in this area.I am not asking for activism but soliciting for your knowledge to discern if this is widespread corruption or corrupt practice or it is my delusional belief. I am questioning the legality cum validity and legtimacy of any and all procurement through the process of "limited tendering" described above