The State, in public interest, may initiate a fresh tender process during the subsistence of existing contracts to implement revised policies, provided existing contracts are not prematurely curtailed. Courts will not interfere in such administrative policy decisions unless they are proven to be arbitrary, mala fide, or violative of law.

J U D G M E N T

ANIL KSHETARPAL, J.:

1. The present Petitions, preferred by the respective Petitioners, lay a challenge to the E-tender dated 18.03.2026 [hereinafter referred to as „Impugned Tender‟] issued by Respondent No.2, i.e., the Central Government Health Scheme [„CGHS‟], through the Government e-Marketplace (GeM) portal, for “Local Chemist Empanelment Service” for supply/procurement of indented drugs and medicines for CGHS Wellness Centres in Delhi for the Financial Years 2026-2028. The Petitioners, who are existing empanelled chemists and stated to be successful bidders under earlier tenders issued by the Respondents, seek, inter alia, quashing of the Impugned Tender.

2. The principal issue which arises for consideration in the present Petitions is whether the Respondents are precluded from initiating a fresh tender process for empanelment of local chemists for a future period during the subsistence of earlier contracts awarded pursuant to previous tenders.

3. Since both the Writ Petitions assail the same E-tender dated 18.03.2026 and raise substantially identical questions of fact and law, they were heard together and are being disposed of by this common judgment.

FACTUAL MATRIX:

4. In order to appreciate the controversy involved in the present Petitions, it is necessary to briefly notice the relevant facts. For the sake of convenience, the facts are being noticed from W.P.(C) 4058/2026, unless the context otherwise requires.

5. Respondent No.2/CGHS issued an E-tender dated 04.01.2023 for empanelment of authorised local chemists for supply/procurement of indented drugs and medicines for CGHS Wellness Centres in Delhi for the Financial Years 2023-2026. The said tender envisaged selection of bidders on the basis of the highest uniform discount offered on the Maximum Retail Price (MRP) of medicines. It is relevant to note that under the CGHS framework, medicines are ordinarily procured through bulk supply mechanisms. However, where medicines are not available through such bulk procurement channels, the concerned Wellness Centre raises an indent, and the supply is effected through empanelled Authorised Local Chemists (ALCs) attached to that Centre. The empanelment of ALCs thus operates as a supplementary and contingent mechanism to ensure uninterrupted availability of medicines at CGHS Wellness Centres.

6. Pursuant to the aforesaid tender, the Petitioners participated in the bidding process and were declared successful bidders for certain Wellness Centres in different zones. It is not in dispute that, consequent upon their selection, the Petitioners were empanelled as authorised local chemists for the respective centres.

7. It is also a matter of record that, in W.P.(C) 4058/2026, apart from the contracts awarded pursuant to the E-tender dated 04.01.2023 for the Financial Years 2023-2026, the Petitioner was further empanelled in respect of an additional Wellness Centre pursuant to a subsequent E-tender dated 04.03.2024. Consequently, the Petitioner is presently an empanelled chemist across different Wellness Centres, the tenu