Rule 151 of The General Financial Rules 2017 Debarment from bidding
Original Rule Text
Visual Summary
Conviction for corruption or public harm.
Up to 3 years for conviction, 2 years for integrity breach.
Bidder must have opportunity to represent against debarment.
Executive Summary
Rule 151 of The General Financial Rules, 2017 outlines the conditions under which a bidder can be debarred from participating in public procurement processes. Debarment can occur due to conviction for offenses under the Prevention of Corruption Act, 1988, or the Bharatiya Nyaya Sanhita, or for causing loss of life/property or public health threats during contract execution. Such debarment can last up to three years. Additionally, a procuring entity can debar a bidder for up to two years if they breach the code of integrity. A crucial aspect of this rule is the mandatory provision for the bidder to be given a reasonable opportunity to represent against any proposed debarment, ensuring due process.
In-Depth Analysis of Rule 151
Rule 151 serves as a critical safeguard in public procurement, ensuring that entities with a history of corruption, public harm, or integrity breaches are excluded from government contracts. This rule promotes transparency, accountability, and ethical conduct among bidders.
Breakdown of the Rule:
- Grounds for Debarment (Sub-rule i): A bidder faces debarment if convicted of:
- An offense under the Prevention of Corruption Act, 1988.
- An offense under the Bharatiya Nyaya Sanhita or any other relevant law, specifically for causing loss of life, property, or public health threats during a public procurement contract.
- Duration of Debarment (Sub-rule ii): For convictions under sub-rule (i), the debarment period for the bidder or its successors is up to three years from the debarment date. The Department of Expenditure (DoE) maintains and displays this list on the Central Public Procurement Portal.
- Debarment for Integrity Breach (Sub-rule iii): A procuring entity can debar a bidder for up to two years if it determines a breach of the code of integrity. The Ministry/Department concerned maintains and displays this list on its website.
- Right to Representation (Sub-rule iv): Crucially, no bidder can be debarred without being given a reasonable opportunity to represent against such debarment. This ensures adherence to principles of natural justice.
Practical Example:
Imagine ‘XYZ Construction Ltd.’ is found guilty of bribing government officials to secure a road construction contract, leading to a conviction under the Prevention of Corruption Act, 1988. As per Rule 151(i)(a), the company would be debarred from all public procurement processes for a period not exceeding three years. This action would be recorded and displayed on the Central Public Procurement Portal by the Department of Expenditure, preventing them from bidding on new government projects during this period. Before the debarment is finalized, ‘XYZ Construction Ltd.’ must be given an opportunity to present its case, as stipulated by Rule 151(iv).
Related Provisions
Understanding Rule 151 is enhanced by considering other related provisions within the General Financial Rules, 2017:
- Rule 144 of The General Financial Rules 2017 Fundamental principles of public buying: This rule lays down the overarching principles of efficiency, economy, transparency, and fair treatment in public procurement, which debarment provisions uphold.
- Rule 175 of The General Financial Rules 2017 Code of Integrity: This rule defines the code of integrity for officials and bidders, a breach of which can lead to debarment under Rule 151(iii).
- Rule 33 of The General Financial Rules 2017 Report of Losses: This rule details the reporting mechanism for losses due to fraud or negligence, which could be a precursor to debarment proceedings.
Learning Aids
Mnemonics:
- D.E.B.A.R.: Dishonesty, Ethics Breach, Bidding Exclusion, Actual Conviction, Representation Right.
Process Flowchart:
Multiple Choice Questions
1. Under Rule 151 of the General Financial Rules, 2017, for what maximum period can a bidder be debarred if convicted of an offense under the Prevention of Corruption Act, 1988?
- A) One year
- B) Two years
- C) Three years
- D) Five years
Show Answer
Correct Answer: C) Three years
2. Which authority is responsible for maintaining the list of bidders debarred due to conviction under Rule 151(ii) of the General Financial Rules, 2017?
- A) Ministry of Finance
- B) Procuring Entity
- C) Department of Expenditure (DoE)
- D) Comptroller and Auditor General
Show Answer
Correct Answer: C) Department of Expenditure (DoE)
3. According to Rule 151(iii) of the General Financial Rules, 2017, what is the maximum debarment period for a bidder who breaches the code of integrity?
- A) One year
- B) Two years
- C) Three years
- D) Five years
Show Answer
Correct Answer: B) Two years
4. Rule 151(iv) of the General Financial Rules, 2017 mandates a crucial step before debarring a bidder. What is it?
- A) Immediate forfeiture of all existing contracts.
- B) Public announcement of the debarment decision.
- C) Giving the bidder a reasonable opportunity to represent.
- D) Automatic blacklisting by all government agencies.
Show Answer
Correct Answer: C) Giving the bidder a reasonable opportunity to represent.
5. Which of the following is NOT a ground for debarment under Rule 151(i) of the General Financial Rules, 2017?
- A) Conviction under the Prevention of Corruption Act, 1988.
- B) Causing a threat to public health during contract execution.
- C) Minor delay in project completion without financial loss.
- D) Conviction under the Bharatiya Nyaya Sanhita for property loss.
Show Answer
Correct Answer: C) Minor delay in project completion without financial loss.
Frequently Asked Questions
What is the primary purpose of Rule 151 of the General Financial Rules, 2017?
Rule 151 aims to ensure integrity and accountability in public procurement by debarring bidders who have been convicted of corruption, caused public harm, or breached the code of integrity, thereby protecting public funds and interests.
Can a bidder be debarred under Rule 151 of the General Financial Rules, 2017 without being heard?
No, Rule 151(iv) explicitly states that a bidder shall not be debarred unless they have been given a reasonable opportunity to represent against such debarment, upholding the principle of natural justice.
Is there a difference in debarment periods for conviction versus integrity breach under Rule 151 of the General Financial Rules, 2017?
Yes, a bidder convicted of certain offenses (e.g., under the Prevention of Corruption Act) can be debarred for up to three years, while a breach of the code of integrity by a procuring entity can lead to debarment for a period not exceeding two years.
Key Takeaways
- Rule 151 enables debarment of bidders for serious offenses like corruption or causing public harm during contract execution.
- Debarment periods vary: up to three years for convictions and up to two years for breaches of the code of integrity.
- The Department of Expenditure and individual procuring entities maintain lists of debarred bidders.
- Crucially, bidders must always be given a fair opportunity to present their case before debarment.
Conclusion
Rule 151 of The General Financial Rules, 2017 is a cornerstone for maintaining ethical standards and public trust in government procurement. By providing clear grounds and procedures for debarment, it acts as a deterrent against malpractices and ensures that public contracts are awarded to responsible and trustworthy entities, all while safeguarding the fundamental right to due process.