Blacklisting: An Instrument Of Coercion

The decision of the State or its instrumentalities not to deal with certain persons or class of persons on account of the undesirability of entering into contractual relationship with such persons is called blacklisting. The authority of the state, blacklisting any person, organisation, shall act fairly and without any arbitrariness. Blacklisting has the effect of preventing a person from the privilege and advantage of entering into lawful relationship with the Government for purposes of gain, thus, it should be exercised with great caution. It is extremely significant that principles of natural justice are duly followed at the time of putting a person on the blacklist and that he is given an opportunity to represent his case.