Debarment and Suspension in Public Procurement: A Survey of Important Executive Guidance and Case Law from India

Abstract

Debarment and suspension of erring contractors are important tools for ensuring compliance with integrity-obligations of government contractors performing procurement actions for the Government. These actions are commonly referred to under Indian government regulations as “banning of business dealings”, “sending contractors on a holiday” and “suspension of business dealings”; and executive guidance and case law in India on the subject typically originates from a wide and rich variety of sources. This paper attempts perhaps the most comprehensive and in-depth survey of available regulatory literature and case law on the subject in India, right from the 1970s to as recently as 2015; while suggesting a way forward for procurement reform through early harmonization and consolidation of guidance, particularly in context of ongoing developments under state government regulations as well as those expected under the newly proposed Public Procurement Bill, 2012 of the Central Government in India.

Keywords: debarment, suspension, blacklisting, banning, government contracts, public procurement, India

JEL Classification: K12, K23