TAMIL NADU TRANSPARENCY IN TENDERS ACT, 1998

Act No. 43 of 1998

11th December, 1998

An Act to provide for transparency in the public procurement and to regulate the procedure in inviting and accepting tenders and matters connected therewith or incidental thereto. WHEREAS to maximise economy and efficiency in Government procurement; AND WHEREAS to foster and encourage effective participation by tenderers in the process of tenders; AND WHEREAS to promote healthy competition among tenderers; AND WHEREAS to provide for fair and equitable treatment of all tenderers; AND WHEREAS it is expedient to eliminate irregularities, interference and corrupt practices in the matters relating to tender processes by providing transparency in such matters; AND WHEREAS to promote the integrity of the process of tenders and to promote fairness and public confidence in the processing of tenders by ensuring transparency in the procedure relating to procurement; BE it enacted by t

S.1 Short title, extent and commencement

• (1) This Act may be called the Tamil Nadu Transparency in Tenders Act, 1998.
• (2) It extends to the whole of the State of Tamil Nadu.
• (3) It shall come into force on 1[such date] as the Government may, by notification, appoint.

1. Appoints 1st day of October 2000 as the date on which the said Act shall come into force. [TNGGE No. 701/01-10-2000 (No. II(2)/FIN/1051(d1)/2000) - G.O.Ms.No. 445/26th September, 2000].

S.2 Definitions

In this Act, unless the context otherwise requires,-

• (a) Construction means all works associated with the construction, reconstruction, demolition, repair or renovation of a building, structure or any other related works;
• 1[(aa) Domestic Enterprise means any micro and small enterprise as defined in the Micro, Small and Medium Enterprises Development Act, 2006 (Central Act 27 of 2006), which manufactures or produces goods, provides or renders services within the State and filed Part II of the Entrepreneurs Memorandum in the District Industries Centres or filed Udyog Aadhaar portal.]
• (b) Goods means raw materials, products, equipment and other objects of every kind and description and includes electricity;
• (c) Government means the State Government;
• 2[(cc) Lowest Tender means the tender which, on evaluation, is found to be the most beneficial to the procuring entity in financially quantifiable terms.]
• (d)
  

S.3 Prohibition or Procurement except by tender

• (1) No procurement shall be made by the procuring entity except by tender.
• (2) The provisions of sections 9 and 10 shall not apply to any procurement made by a procuring entity, in the normal course, if it is for carrying on business of selling and buying goods:

  Provided that in case of procurement by the procuring entities on behalf of and for sale to Government or Government organisations for any Government programme, such procurement shall be only by tender.

• 1[(3) Notwithstanding anything contained in sub-section (1), a procuring entity may procure goods or services through a Government department or Government undertaking, nominated by the Government by notification to act as an agency for procuring specified classes of goods or services on behalf of any procuring entity upon payment of a fee:

  Provided that no procurement shall be made by the nominated agency except by tender.]

1. Inser

S.4 Regulation of Tenders

No tender shall be invited or accepted by any authority after the commencement of this Act, except in accordance with the procedure specified in this Act and the Rules made thereunder.

S.5 Appointment of Bulletin Officer

The Government may, by notification appoint,-

• 1[(a) an officer of the Government not below the rank of a Deputy Secretary to Government as State Tender Bulletin Officer];
• 2[(b) an officer not below the rank of a Deputy Collector as District Tender Bulletin Officer for every district];

1. The Director, Information and Public Relations appointed as State Tender Bulletin Officer. [TNGGE No. 701/1-10-2000 (No. II(2)/FIN/1051(d2)/2000) - G.O.Ms.No. 447/26th September, 2000 and Amendment TNGG No. 27,/18-7-2001 (No. II/(2)FIN/561/2001) (for the expression Joint Director (Information), the expression The Director, Information and Public Relations was appointed as State Tender Bulletin Officer - G.O.Ms.No. 233/15th June, 2001].

2. The District Public Relation Officer attached to the Collector of every district appointed as District Tender Bulletin Officer for the respective districts. [TNGGE No. 701/1-10-2000 (No.

S.6 Functions of Bulletin Officers

• (1) On receipt of intimation relating to details of notice of invitation of Tender, from the Tender Inviting Authority, information relating to acceptance of tender together with a comparative analysis and reasons for acceptance of tenders from the Tender Accepting Authority, the State or as the case may be, the District Tender Bulletin Officer shall, publish the same in the State or District Tender Bulletin, 1[as the case may be, in such manner and within such time as may be prescribed:]

  Provided that, if the procurement covers more than one district, the invitation and the acceptance of tenders shall be published in the State Tender Bulletin and also in the District Tender Bulletin of such districts.

• 2[(2) The Tender Bulletin shall be delivered to registered subscribers by e-mail and shall also be published in a dedicated website administered by the State Tender Bulletin Officer for view and download by any person.]

S.7 Appointment of Tender Inviting Authority and Tender Accepting Authority

• (1) The Government or the procuring entity, may, by order, appoint an officer under its control as Tender Inviting Authority for carrying out the functions assigned to it under this Act.
• (2) The Government or the procuring entity, may, by order, appoint an officer or a committee consisting such number of officers as may be prescribed as Tender Accepting Authority for carrying out the functions assigned to it under this Act.
• (3) Notwithstanding anything contained in sub-sections (1) and (2), -
  • (a) where the Government is the Tender Accepting Authority, Tamil Nadu Government Business Rules shall be followed for tender acceptance ensuring adherence to the other provisions of this Act;
  • (b) where a Multi-member Tender Accepting Authority is discharging its functions under other Acts, such Multi-member Authority shall be deemed to be Tender Accepting Authority under this Act.

S.8 Opening of Tender

The Tender Accepting Authority or any other officer authorised by it, shall open the tenders in the presence of tenderers present and who have submitted tenders in such time and in such place as may be specified in the tender document.

S.9 Functions of Tender Inviting Authority

• (1) The Tender Inviting Authority shall invite tenders in the form of a notice containing such particulars as may be prescribed.
• (2) The Tender Inviting Authority shall communicate the Notice Inviting Tenders to the Bulletin Officers according to the value of the procurement and within such time as may be prescribed, so as to publish the same in the appropriate Tender Bulletin.
• (3) The Tender Inviting Authority shall also publish the Notice Inviting Tenders in Indian Trade Journal and in daily newspapers having wide circulation depending upon the value of the procurement prescribed.
• 1[(3A) The Tender Inviting Authority shall also cause the Notice Inviting Tender hosted in the dedicated website administered by the State Tender Bulletin Officer.]
• (4) The Tender Inviting Authority shall supply the schedule of rates and tender documents in such manner and in such places as may be prescribed to every intending tenderer who has applied
  

S.10 Evaluation and Acceptance of Tender

• (1) The Tender Accepting Authority shall cause an objective evaluation of the tenders taking into consideration the schedule of rates as mentioned in the tender document and the prevailing market rate for procurement and comparison of the tenders in accordance with the procedure and criteria specified in the tender document.
• (2) After evaluation and comparison of tenders as specified in sub-section (1), the Tender Accepting Authority shall accept the lowest tender ascertained on the basis of objective and quantifiable factors specified in the tender document and giving relative weights among them:

  1[Provided that the Tender Accepting Authority shall accept the tender of domestic enterprises, not being the lowest tender, upon satisfaction of such conditions as may be prescribed, in respect only of goods manufactured or produced and services provided or rendered by them, and only to the extent of not exceeding twenty five per cent of the total
  

  S.11 Appeal

  • (1) Any tenderer aggrieved by the order passed by the Tender Accepting Authority under section 10 may appeal to the Government within ten days from the date of receipt of order and the Government shall dispose the appeal within fifteen days from the date of receipt.
  • (2) In disposing of an appeal under sub-section (1), the Government may, after giving the party an opportunity of making his representations, pass such order thereon as they may deem fit.
  • (3) The order of the Government on such appeal shall be final.
  • (4) The Government may, pending the exercise of their powers under this section pass such interlocutory orders as they may deem fit.
  
  

  S.12 Right to reject Tender

  • (1) After negotiation with the tenderer and before passing the order accepting a tender as under sub-section (6) of Section 10, if the Tender Accepting Authority decides that the price quoted by such tenderer is higher by the percentage as may be prescribed over the schedule of rates or prevailing market price, 1[the said authority] shall reject the tender.
  • (2) The Tender Accepting Authority before passing the order accepting a tender, may also reject all the tenders for reasons such as changes in the scope of procurement, new technologies or substantial design changes, lack of anticipated financial resources, court orders, accidents or calamities and other unforeseen circumstances.

  1. Substituted [for he] by the TNTIT (Second Amendment) Act, 2012 (Tamil Nadu Act 31 of 2012) section 4 [TNGGE No. 320/15-11-2012] (w.e.f. 07-12-2012) [TNGGE No. 342/7-12-2012 (No. II(2)/FIN/815(g)/2012) - G.O.Ms.No. 422, Finance (Salaries), 7th December, 2012
  

  S.13 Power to obtain information

  Notwithstanding anything contained in this Act or in any other law for the time being in force, the Government may with a view to ensuring transparency in tender process, by order in writing, call for any information relating to transparency from the Tender Inviting Authority or from the Tender Accepting Authority on any matter in tender processing and the said Authority shall furnish the same to the Government.

  
  

  S.14 Power of Government to call for records

  The Government may at any time, with a view to ensuring transparency in tender process, require any authority,-

  • (a) to produce records relating to invitation and acceptance of tenders;
  • (b) to furnish the tender document, estimate, statement, accounts or statistics relating to such tenders; and
  • (c) to furnish any report.
  
  

  S.15 Procedure to be followed in certain cases

  The provisions of this Act to the extent they are not consistent with the procedure prescribed in the Projects funded by International Agreements or by International Financial Agencies shall not apply.

  
  

  S.16 Provisions of this Act not to apply in certain cases

  The provisions of sections 9 and 10 shall not apply to procurement,-

  • (a) during natural calamities and emergencies declared by the Government;
  • (b) available from a single source only from a supplier or cases in which a particular supplier or contractor has exclusive rights in respect of the goods or services or construction and no reasonable alternative or substitute exists or where the procuring entity having procured goods, equipment, technology from a supplier or contractor determines that additional supplies must be procured from that specific supplier or contractor for reasons of standardization and compatibility with the existing goods, equipment or technology:

    Provided that a committee of three experts consisting one technical representative of the procuring entity, one technical representative of a State or Central Government Organisation dealing with similar procurement and one representative from a reputed Academic or Research Institut
    

    S.17 Officers deemed to be Public Servant

    Every Officer acting under or in pursuance of the provisions of this Act or rule or order or notification made thereunder, shall be deemed to be public servant within the meaning of section 21 of the Indian Penal Code (Central Act XLV of 1860).

    
    

    S.18 Indemnity

    No suit or other legal proceeding shall lie against the Government or any officer or authority of the Government in respect of anything which is in good faith done or intended to be done.

    
    

    S.19 Bar of Jurisdiction

    Save as otherwise provided in this Act no order passed or proceeding taken by any officer or authority under this Act shall be called in question in any court, and no injunction shall be granted by any court in respect of any action taken or to be taken by such officer or authority in pursuance of any power conferred by or under this Act.

    
    

    S.20 Act to override other laws

    The provisions of this Act shall have effect notwithstanding anything inconsistent therewith contained in any other law for the time being in force or any custom or usage or agreement or decree or order of a Court or a Tribunal or other Authority.

    
    

    S.21 Power to remove difficulties

    If any difficulty arises in giving effect to the provisions of this Act, the Government may, by an order published in the Tamil Nadu Government Gazette, make such provisions, not inconsistent with the provisions of this Act as appear to them to be necessary or expedient for removing the difficulty: 1[]

    1. Omitted - Provided that no such order shall be made after expiry of a period of two years from the date of commencement of this Act by the TNTIT (Amendment) Act, 2002 (Tamil Nadu Act 43 of 2002) section 3 (section 1(2) deemed to have come into force on the 30-09-2002) [TNGGE No. 757/18-11-2002].

    
    

    S.22 Power to make rules

    • (1) The Government may make rules for carrying out the purposes of this Act.
    • (2)
      • (a) All rules made under this Act shall be published in the Tamil Nadu Government Gazette and unless they are expressed to come into force on a particular day, shall come into force on the date on which they are so published.
      • (b) All notifications issued under this Act shall, unless they are expressed to come into force on a particular day, come into force on the day on which they are published.
    • (3) Every rule made or notification or order issued under this Act shall, as soon as possible, after it is made or issued, be placed on the table of the Legislative Assembly; and if, before the expiry of the session in which it is so placed or the next session, the Assembly makes any modification in any such rule or notification or order, or the Assembly decides that the rule or notification or order should not be made or issued, the rule or noti
      

    S.23 Savings

    All the existing rules, regulations, departmental codes, manuals, orders shall so far as they are not inconsistent with the provisions of this Act and the rules made thereunder, continue in force.