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ARTICLE · 17 SEPTEMBER 2020

Restrictions In Bidding Process For Public Procurement Contracts

Department of Economic Affairs (DEA) on July 23, 2020 issued an office memorandum amending Rule 144 of General Financial Rules, 2017 (GFR) by inserting a new sub-Rule (xi) under Rule 144.

IndiaGovernment, Public Sector

Department of Economic Affairs (DEA) on July 23, 2020 issued an office memorandum amending Rule 144 of General Financial Rules, 2017 (GFR) by inserting a new sub-Rule (xi) under Rule 144. The new sub-Rule (xi) empowers DEA to impose restrictions, including prior registration and screening requirements, in relation to procurement from bidders from certain countries on grounds of defence or national security of India. No procurements shall be made in violation of any restrictions that may be imposed by DEA in this regard.

In exercise of its powers under Rule 144 (xi), DEA has, on July 23, 2020 issued an order imposing restrictions on bidding process in procurement of goods, services (including consultancy and non-consultancy services) or works (including turnkey projects) in India (Order). A brief summary of the Order (including restrictions thereunder) have been set out below in greater detail.

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