Legality of Vendor Registration without Ad in newspaper or internet

Is it okay and legal to register vendors without publicity, and carry out a limited tender among them without publicity in a fully state government owned company in its factory or plant coming under Factory Act for IT and communication goods & services and works for procurement of items like computer and networking hardware and accessories fiber optic cable ,cable laying work internet subscription internet leased line cable laying local area network cable laying by selecting among vendors registered on basis of arbitrary recommendation of vendors by company officials in any state of India as per vigilance norms laws like Contract law and anti corruption law provisions in force in force because this goes against common sense fairness.Is this not a malpractice and irregularity and contrary to the relevant provisions of law and vigilance norms in force and extant and set by Central Vigilance Commission in India or is this legal and okay

Answers (3)

115 votes


Tender in India has to be published in India. There is no scope for internal tender, or tender on recommendation without publishing. So of any such tender which is not published is not valid.

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156 votes

Any government property can’t be sold with calling for tender and/or auction. The illegal sale can be challenged by PIL or writ in high court. The vigilance department had laid down the mode of publication and number of news. Papers. The way you have explained, it seems there exists illegality. I can advice better after seeing the papers.

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59 votes

For Vendor registration in case of limited tendering process , a company may have own set of rules . However, such Rules should be sacrosanct and well published for information of all concerned.GOVT Companies (central government owned or state government owned) generally do have their procurement policy based on guidelines issued by respective vigilance commission.Competent authority as per DOP can proceed for procurement action strictly in accordance to authority vested with him . Should he breach his jurisdictional​ limitation, he would be liable for administrative action as called for under the circumstances.An aggrieved party may opt for writ petition for judicial review in case of arbitrary and capricious action on the part of a Government company.For further instructions contact lawRato.

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