A Complete Guide to The Chhattisgarh Store Purchase Rules, 2002

A Complete Guide to The छत्तीसगढ़ शासन भण्डार क्रय नियम , 2002

Introduction

The Chhattisgarh Store Purchase Rules, 2002 (updated as of March 5, 2025) serve as the definitive regulatory framework for procurement within the Chhattisgarh State Government. These rules govern how government departments, public undertakings, boards, and local bodies acquire goods and services. Designed to ensure fiscal responsibility, the rules prioritize transparency through e-tendering, mandate the use of the Government e-Marketplace (GeM), and provide specific protections and incentives for local industries, startups, and small businesses within the state.

Key Takeaways

  • GeM Priority: Procurement via the Government e-Marketplace (GeM) is mandatory if the item is available there.
  • Startup Incentives: Recognized startups in Chhattisgarh are exempt from prior experience requirements and Earnest Money Deposit (EMD).
  • Timely Payment: Departments must make payments within 20 days of receipt of goods/bills, or face interest charges.
  • Local Preference: SC/ST/OBC entrepreneurs and local industries receive preference in procurement if quality and price are equal.

Objectives of the Act

  • To ensure government departments receive high-quality materials at fair prices within a fixed timeframe.
  • To encourage local small-scale industries and cottage industries.
  • To provide preference to SC, ST, and OBC entrepreneurs in state procurement.
  • To enforce economy and transparency in the utilization of public funds.

Key Structure of the Act

Rule 3
Mandates procurement via GeM portal. Finance Dept approval needed to bypass GeM.
Rule 4
Defines Tender Processes: Single, Limited, and Open Tenders based on value.
Rule 4.7 & 4.8
Financial Safeguards: 1% EMD and 3% Security Deposit requirements.
Rule 11
Inspection protocols and mandatory payment timelines (20 days).

Important Definitions

TermDefinition / Rule Context
Proprietary ArticleAn item manufactured by only one producer. Can be bought via Single Tender up to ₹50,000 (or more with a specific certificate).
Limited TenderProcurement method for values between ₹50,001 and ₹3 Lakhs (up to ₹5 Lakhs on GeM), requiring quotes from at least 3 manufacturers.
Open TenderMandatory for purchases above ₹3 Lakhs. Requires public advertisement in local, state, or national newspapers depending on value.
EMD (Earnest Money)A deposit of 1% of the estimated purchase value required to establish the seriousness of the bidder.
Security DepositA deposit of 3% of the actual purchase value collected from the successful bidder before issuing the supply order.

Landmark Judgments

  • Legal Context: While specific case names are not cited within the Rules text, the framework is built upon standard administrative law principles upheld by Indian Courts regarding public procurement. (General Principle)
  • Transparency Mandate (Rule 15): The rules strictly enforce the publication of tenders on websites to satisfy the legal requirement of transparency and equal opportunity (Article 14 of the Constitution). (See Rule 15)
  • Non-Arbitrariness (Rule 4.12): The Purchase Committee must record reasons in writing if the lowest tender (L1) is rejected, ensuring decisions are not arbitrary and are legally defensible. (See Rule 4.12)
  • Fair Payment (Rule 11): The inclusion of interest payments for delayed settlement of bills creates a statutory right for suppliers to receive timely compensation. (See Rule 11)

Frequently Asked Questions

Is it mandatory to purchase through the GeM Portal?
Yes, under Rule 3.1, if goods or services are available on the Government e-Marketplace (GeM), they must be purchased there. Purchasing outside GeM requires written consent from the Finance Department.
What is the limit for a Limited Tender?
Limited tenders are generally for purchases between ₹50,001 and ₹3,00,000. However, if using the GeM portal’s limited tender method, this limit extends up to ₹5 Lakhs.
Are there exemptions for Startups regarding EMD?
Yes. Startups established in Chhattisgarh and recognized by the Government of India are exempt from submitting Earnest Money Deposit (EMD) and do not require prior experience or turnover criteria (Rule 4.2).
What happens if the department delays payment?
According to Rule 11, departments must pay bills within 20 days of receipt. If there is an unreasonable delay, the department is liable to pay interest at the prevailing bank rate.
Can departments buy directly from other government bodies?
Yes. Rule 8 allows direct purchase without tenders from specific bodies like the Handloom Development Association, Khadi & Village Industries Board, and the Minor Forest Produce Federation for specific items.

Conclusion

The Chhattisgarh Store Purchase Rules, 2002, provide a robust framework balancing the need for high-quality government procurement with the socio-economic goal of supporting local industries. By integrating modern digital tools like GeM and enforcing strict timelines for payments, the rules aim to create a transparent, efficient, and fair business environment for suppliers across the state.