Relatives of Govt employees cannot bid in tenders: SC

“The ultimate objective appears to be that the official concerned should not be in a position to influence the decision making process,” the apex court said.

The bench passed the ruling while setting aside rulings passed by the Himachal Pradesh High Court and the Punjab and Haryana High Court.

The two courts in separate matters had quashed the rules for disqualification of bidders framed by BSNL, a public sector telecom operator.

Aggrieved by the rulings, BSNL had come in appeal before the apex court. The apex court had rejected the arguments of contractor Bhupender Minhas and others who submitted that the rule stipulated by the BSNL at the time of inviting tenders was illegal and violative of the Constitution.

The contractors submitted that the stipulation would preclude even those bidders who might be related to some Class III or IV employees who are presumed to be without the power to influence the decision-making process in a tender.

The apex court observed it can certainly be provided that ‘other things being equal, preference will be given to those whose relatives are not in employment in any unit’.