Setback to Hitachi Payments: Bombay HC allows Non-local Entities to Participate in Tender below 200 Crores, not Violative of the “Make In India” Policy [Read Order]

In a major setback to Hitachi Payment Services Pvt Ltd, the Bombay High Court allowed the non-local entities to participate in tender below 200 Crores, not violative of the “Make In India” Policy.

The eligibility of non-local suppliers to participate in the Request for Proposal (RFP) issued by the respondent-Bank for the supply, installation and maintenance of 1900 Cash Recycler Machines is the subject matter of challenge in the present petition.

The Petitioners are Indian manufacturers and suppliers of Cash Recycler Machines (CRMs) and have raised objections to the tender condition permitting non-local manufacturers and suppliers to participate in the tender process. Eligibility of non-local suppliers is essentially challenged on the ground that the same is in contravention of the “Make In India” Order dated 16.09.2020, General Financial Rules, 2017 and Manual for Procurement of Goods, 2022.

The emphasis of the Petitioner is that the tender cost is not above Rs.200 crores. The Petitioners had put forth their bid in the tender as Rs.215 and 219 crores.

‘Non-local Suppliers’ are those who have local content of less than 20%. The broad scheme of the “Make In India” Order is participation only by ‘Class-I local suppliers and ‘Class-II local suppliers in the procurement undertaken by procuring entities except when a Global Tender Enquiry (GTE) has been issued.

In GTE, even non-local suppliers are eligible to bid along with Class-I and Class-II local suppliers. GTE is to be resorted to when the estimated value of purchases is over Rs.200 crores.

The Court of Acting Chief Justice Sandeep V Marne observed that “Both the Petitioners had quoted their bid above Rs.200 crores. Whereas, according to the Respondents, their assessment, prior to the floating of the tender, was Rs.208 crores. In that case, the entire edifice of the Petitioners’ contention that Respondent no.1 has violated the “Make In India” order stands negated.”

The Bench concluded by noting that the entire gamut of the Petitioners’ case is based upon non-adherence to the “Make In India” policy. However, once it is held that Respondent no.1 had assessed the estimated cost of tender while floating it at Rs.208 crores, Respondent no.1 is entitled to float global tender and the violation of the “Make In India” Policy would not subsist an issue.

To Read the full text of the Order CLICK HERE

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