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2h ago

Supreme Court Strikes Down Chhattisgarh Tender Clause That Shut Out Outside Bidders

The court said eligibility must relate to the contract’s purpose, promoting wider participation to protect the public exchequer.

The court’s ruling came on an appeal filed by Vinishma Technologies Pvt Ltd, which had challenged the Chhattisgarh high court’s orders upholding the tender condition (HT Photo)
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Overview

  • A bench of Justices Sanjay Kumar and Alok Aradhe set aside the Chhattisgarh High Court’s orders and quashed three tenders for school sports kits.
  • The invalidated clause required proof of at least ₹6 crore in supplies to Chhattisgarh state agencies within the past three years, narrowing the field for contracts worth about ₹40 crore.
  • The court held the state-only past-performance requirement violated Articles 14 and 19(1)(g) and offended the doctrine of a level playing field.
  • Judges rejected the state’s Maoist-affected justification as untenable for a non-sensitive supply, noting only some districts face such issues and logistics can be handled through local chains.
  • The ruling warns that place-bound criteria foster cartelisation and directs the state to reframe tender conditions with a rational nexus to the contract and open competition.