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GFR Debarment Guidelines | Guidelines on Debarment of firms from Bidding | Latest Changes in Rule 151 of GFR (General Financial Rules) 2017

Guidelines on Debarment of firms from Bidding. Dated 2nd November 2021

Attention is drawn towards Rule 151 of General Financial Rules (GFRs), 2017 regarding 'Debarment from Bidding' which is reproduced as under: 

 (i) A bidder shall be debarred if he has been convicted of an offence- 

 (a) under the Prevention of Corruption Act, 1988; or 

(b) the Indian Penal Code or any other law for the time being in force, for causing any loss of life or property or causing a threat to public health as part of execution of a public procurement contract. 

(ii) A bidder debarred under sub-section (i) or any successor of the bidder shall not be eligible to participate in a procurement process of any procuring entity for a period not exceeding three years commencing from the date of debarment

Department of Commerce (DGS& D) will maintain such list Which will also be displayed on the website of DGS&D as well as Central Public Procurement Portal. 

(iii) A procuring entity may debar a bidder or any of its successors, from participating in any procurement process undertaken by it, for a period not exceeding two years, if it determines that the bidder has breached the code of integrity. The Ministry/ Department will maintain such list which will also be displayed on their website. 

(iv) The bidder shall not be debarred unless such bidder has been given a reasonable opportunity to represent against such debarment. 

2. This department has received a reference from Department of Commerce with a proposal that the task of universal banning of firms as per Rule 151 

(ii) of GFRs as above may be undertaken by Department of Expenditure or should be decentralized to individual line Ministries/ Departments as DGS&D had been wind up on 31.10.2017. Central Public Procurement Portal (CPPP) or the Department of Expenditure can then-maintain a master data of all such banned firms and it can be made available in public domain.

3 In context of above, all issues regarding debarment have been reviewed in consultations with major procuring Ministries/ Departments and it is decided to issue attached 'Debarment Guidelines' in suppression to all earlier instructions on this subject. 

4. This issues with the approval of Finance Secretary

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