Allahabad HC Emphasizes Government e-Marketplace Portal as Crucial for Buyers and Sellers

LI Network

Published on: December 09, 2023 at 12:20 IST

The Allahabad High Court has highlighted the significance of the Government e-Marketplace (GeM) Portal for the procurement of goods and services, asserting that it is a “need of the hour.”

The court commended the mechanism employed by the portal and the government’s efforts to utilize it for the procurement of goods and services, stating that it is in the best interest of both buyers and sellers.

The bench, comprising Justice Mahesh Chandra Tripathi and Justice Prashant Kumar, emphasized that the GeM Portal, as a technology-driven platform, facilitates the procurement process for various government departments. It utilizes an auto-run method to determine the ‘L-1,’ streamlining the comparison process and eliminating interference in order placement and payment processing.

The court noted that the GeM Portal sends digital notifications to registered vendors and buyers interested in goods or services, ensuring a cashless and time-bound payment directly to the bank. The platform’s ability to enhance competition allows the government to procure goods and services at competitive rates.

Additionally, the court held that a bidder cannot challenge tender conditions unless introduced arbitrarily or with malafide intent. It affirmed the government’s right to set tender conditions and suggested the publication of doctors’ names in the public domain to enhance transparency.

The GeM Portal, as the National Public Procurement Portal for Central and State Government Organizations, aims to simplify the procurement process, increase vendor participation, and promote transparency.

The court emphasized that the petitioner, challenging tender conditions, was well aware of the GeM Portal system, which has become the primary platform for government tenders.

In the context of a specific case related to the procurement of security personnel services, the court dismissed the petitioner’s plea for the renewal of the tender, citing the absence of mutual consent for renewal.

The court underscored the government’s discretion to impose bid conditions, citing judgments that support the government’s right to set conditions unless arbitrary or introduced with malafide intent.

In conclusion, the Allahabad High Court praised the GeM Portal’s role in fostering transparency and efficiency in the procurement process, highlighting its positive impact on both buyers and sellers.

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