In a move to uphold transparency and compliance within its marketplace, the Government e-Marketplace (GeM) has recently taken stringent actions against sellers found in violation of Clause 26 of GeM General Terms and Conditions (GTC), also known as Rule 144.
GeM, India’s premier online procurement platform, serves as a central portal for government departments, ministries, and public sector undertakings to procure goods and services. To ensure fair practices and adherence to regulations, GeM periodically conducts assessments to validate vendor compliance with its terms and conditions.
As Part Of An Extensive Exercise, GeM Has Meticulously Evaluated Vendors’ Compliance Status Through Vendor Assessments And Exemptions, Along With A Thorough Reassessment Process. Unfortunately, A Significant Number Of Sellers And Brands Have Either Failed To Demonstrate Compliance Or Have Been Outright Deemed Non-Compliant With Clause 26 Of The GTC.
Overview of GFR Rule 144(xi)
In a bid to safeguard its interests and ensure the integrity of its procurement processes, India’s Ministry of Finance recently made a significant amendment to the General Financial Rules (GFR), 2017. This amendment, outlined in Rule 144(xi), has far-reaching implications for bidders from countries that share a land border with India. It mandates that such bidders, with few exceptions, must be registered with the Registration Committee established by the Department for Promotion of Industry and Internal Trade (DPIIT) to participate in tenders.
This move underscores the government’s commitment to promoting transparency and accountability in public procurement while also addressing security concerns related to border regions. By requiring registration with the DPIIT’s Registration Committee, the government aims to ensure that bidders from neighbouring countries meet certain criteria and adhere to specified regulations before engaging in tender processes.
Furthermore, in a subsequent communication referenced as u/ref(ii), the requirement for registration with the Registration Committee was extended to cover Specified Transfer of Technology (ToT) agreements. This extension highlights the government’s recognition of the importance of technology transfer and the need to regulate it in a manner that aligns with national interests and security priorities
As a result of these regulatory updates, compliance requirements have been integrated into the Government e-Marketplace (GeM) General Terms and Conditions (GTC), specifically under clause 26. This clause serves as a pivotal point of reference for bidders and contracting authorities engaging in procurement activities through GeM, which is the central platform for online procurement by government entities in India.
Clause 26 of the GeM GTC now mandates that bidders from neighbouring countries, as defined by Rule 144(xi) of the GFR, must demonstrate compliance with the registration requirements set forth by the DPIIT’s Registration Committee. This includes both tender bidding and Specified Transfer of Technology agreements facilitated through GeM.
Implications of Non-Compliance
The repercussions for sellers found in breach of Clause 26 of the GTC are severe. GeM has promptly removed these sellers, their associated brands, and all respective product catalogues from its marketplace. Consequently, these entities are rendered ineligible to participate in any bidding processes on GeM, including custom bids and Bill of Quantity (BOQ) bid modes.
Buyer Advisory
GeM has issued a cautionary advisory to all buyers utilizing its platform. Buyers are strongly advised to exercise caution and vigilance when considering offers from sellers who have been suspended due to non-compliance with Clause 26. Furthermore, buyers are urged to reject any offers received from these sellers or any other sellers offering products associated with the suspended brands. GeM underscores the importance of buyer due diligence in ensuring adherence to marketplace regulations and standards.
Moreover, GeM reserves the right to annul contracts even after they have been placed by the buyer, should they involve suspended sellers or brands. To stay informed about the updated list of suspended entities, buyers are encouraged to regularly check GeM’s official platform for the latest information.
Commitment to Integrity & Accountability
GeM’s proactive measures to enforce compliance with Clause 26 of the GTC reflect its unwavering commitment to integrity and accountability in procurement practices. By swiftly addressing non-compliance issues and implementing consequential actions, GeM aims to foster a fair, transparent, and trustworthy marketplace environment for all stakeholders.
Sellers operating on GeM are reminded of the imperative to uphold the stipulated terms and conditions to avoid facing similar repercussions in the future. As GeM continues to uphold its standards and regulations, stakeholders can expect enhanced credibility and efficiency within India’s digital procurement landscape.