Debarment Instructions for Ministry of Railways for debarment of firms from participation in any procurement process

Debarment Instructions for Ministry of Railways for debarment of firms from participation in any procurement process: Railway Board Order dated 09.11.2022

भारत सरकार Government of India
रेल मंत्रालय Ministry of Railways
रेलवे बोर्ड (Railway Board)

No. 2024/RS(G)/779/17( E 3380016)

नई दिल्‍ली New Delhi Dated: 09.11.2022

The General Managers, All Indian Railways/PUs, NF(C), CORE
DG/RDSO/Lucknow, NAIR/Vadodara,
PCAO, DMW/Patiala, COFMOW/NDLS,
CAO, WPO/Patna, RWP/ Bela.

Sub: Debarment Instructions for Ministry of Railways

Ref: Department of Expenditure O.M. No. F.1/20/2018-PPD dated 02.11.2021

Indian Railway Vigilance Manual provided the basis for dealing with the debarment proposals received from various procuring units/vigilance.

Department of Expenditure, Ministry of Finance vide its OM dated 02.11.2021, in suppression to all earlier instructions, has issued debarment guidelines on debarment of firms from participation in any procurement process.

Henceforth debarment in M/o Railways shall be dealt with as per guidelines issued by DoE and following additional instructions. In case of any conflict, debarment guidelines of DoE would prevail.

1. 1. Competent Authority for approval for debarment for Ministry of Railways shall be concerned
   Additional Member. In case Additional Member is not in position, Concerned Board member may nominate concerned Principal Executive Director or Executive Director as Competent Authority.
2. Proposals for debarment shall be sent by procuring units to concerned Directorate in Railway Board. Proposals for debarment out of vigilance/SPE/CBI cases shall be sent by concerned Vigilance Dte of Railway Board to concerned Directorate in Railway Board.
3. Debarment proposals from procuring units shall invariably include opinion of the Vigilance Branch of that procuring unit when complicity of Railway Officers/Staff in the irregularities/fraud indulged in by the firms is suspected by the procuring unit.
4. Debarment proposals from procuring units should contain/enclose detailed information as per format enclosed (Annexure I). The proposal should be vetted by the Law Officer and should have the approval of the concerned PHOD. In case it is proposed to debar the firm across all Ministries/Departments, the proposal would be forwarded to concerned directorate of Railway Board with the approval of General Manager. For proposals from Vigilance Dte of Board, proposal shall be approved by PED/Vigilance. Complete proposal along with all the documents should be attested by SAG or above level officer
5. Incases where details regarding Partners/Proprietors/Directors etc. of the firm and also of allied firms could not be linked earlier with the debarment proposal, these details should be furnished promptly by the concerned proposing unit, as and when such information comes to its knowledge.
6. Before sending the proposal to Board for debarment, the unit should remove the name of the firm from its list of approved/registered/empanelled suppliers, if applicable.
7. The debarment proposal will be examined in Board by the concerned Directorate to examine the adequacy of the facts necessary for issue of Show Cause notice to the firm concerned.
8. Any clarification or additional/supplementary information sought by Board from the firm shall be through the concerned PHOD of the field unit. In vigilance related cases, the information shall be called through vigilance/PHOD, as applicable or considered necessary.
9. Show Cause notice (format as per Annexure-II) shall be issued to the delinquent firm indicating clearly the charges (based on the facts as can be proved) through registered post (and also email, if available). In case no reply to the show cause notice is received from the firm within the stipulated time (30 days), followed by reminder for 10 days more, action for processing the case ex-parte against the firm should be initiated. Subsequently, an opportunity shall be given to the firm for in-person hearing (oral hearing) by fixing a date for hearing. Hearing should be held at the level of minimum Director (or Joint Director if Director is not posted) level officer in Board. Brief for the same shall be prepared and jointly signed by the Director (or joint Director as applicable) and representative of the firm attending the hearing. Firm’s reply to show cause notice and their submission in oral hearing will be examined.
10. Views/comments of the concerned proposing unit may also be called on the representation/oral hearing of the firm and duly considered. For cases out of vigilance/CBI/SPE etc, views/comments of Vigilance Dte. may be obtained, if considered necessary. The views/comments so received shall not be binding.
11. Based on above, case should be processed for approval of Competent Authority for debarment of the firm or otherwise.
12. Debarment order, when issued, shall be in the proforma as per Annexure III. Debarment shall be effective from the date of issue of the Debarment order. Debarment order shall specify the specific time period for which it will be effective. The order shall also mention name of the allied firms and names of all the partners/proprietors/directors/all members etc. of the firm and its allied firms. In case of JV/consortium, name of all the partners shall be mentioned. If details regarding partners/proprietors/directors/all members & partners of JV/consortium, etc. of the firm and its allied firms, come to notice at a later date, those shall be circulated to all. Debarment order will also indicate the reason(s) in brief that led to debarment of the firm. The fact that the representation has been considered and oral hearings have also been conducted (as applicable) should invariably be mentioned in the debarment order. If no representation was received in response to the show cause notice or the firm has not availed the opportunity of oral hearing given to it, the same should invariably be indicated in the debarment order.
13. Debarment Order will be applicable to all units of Ministry of Railway including field units, subordinate/attached offices, autonomous bodies, CPSUs, etc. under the Ministry of Railways and will be sent to them. Firm shall also be informed about debarment order through registered post (and also email, if available). A copy of debarment order shall be sent to CRIS and CEO/GeM. Order of debarment shall be uploaded on the website of Indian Railways, i.e. indianrailways [at] gov.in and IREPS portal.
14. The debarred firm, including its allied firms, shall be debarred from participation in any procurement process of Ministry of Railway, including all field units, subordinate/attached offices, autonomous bodies, CPSUs, etc. under Ministry of Railway. No contract of any kind whatsoever shall be placed with the debarred firm including its allied firms.
15. Any representation from the debarred firm shall be dealt with by the concerned directorate in Board. The revocation of debarment order before expiry of debarment period, if there is adequate justification for the same, shall be done with the approval of concerned Board member.
16. Court cases arising out of debarment orders issued shall be processed/dealt with by the concerned procuring unit
17. In case it is considered that the misconduct is grave enough and there are sufficient/strong evidence on record to believe that the firm has been engaged in activities requiring debarment across all Ministries/Departments , after issue of debarment order for Ministry of Railway and with specific approval of concerned Board Member, the proposal shall be expeditiously sent by concerned Directorate to Secretary/Expenditure with a self-contained note, all relevant documents and clear recommendations regarding debarment across all Ministries and period thereof.
18. CPSEs/attached offices/autonomous bodies under Ministry of Railways shall independently deal with the debarment cases pertaining to their organization as per para 8 and 10 of the DOE order. In cases where it is considered that the misconduct is grave enough and there are sufficient/strong evidence on record to believe that the firm has been engaged in activities requiring debarment for either Ministry of Railway as a whole or across all Ministries/Departments of Govt of India, after issue of debarment order for their organization and with specific approval of head of the organization (CEO/CMD/MD), the proposal shall be expeditiously sent to the concerned Directorate in Board with a self-contained note, all relevant documents and clear recommendations regarding debarment for Ministry of Railway as a whole or across all Ministries/Departments of Govt of India and period thereof.
19. Debarment proposals received in concerned Directorate of Board Board upto 10 days from the date of issue of these instructions(called old proposals) shall be dealt as per the process being followed earlier to these instructions being issued. Debarment proposals received after this date (called new proposals) shall be dealt as per these instructions
20. The Competent authority for approval of debarment for all proposals (new/old) shall be as per these instructions (i.e. AM or PED/ED as applicable).
21. However, provisions of DoE O.M. dated 02.11.2021 shall be applicable for all proposals (new/old). Debarment order shall also be issued accordingly.
22. These instructions shall be applicable for all types of contracts.
23. Necessary changes may be made in the Tender Documents.

These instructions are issued in consultation with Engineering and Vigilance directorate and approval of Railway Board.

D.A.: As above.

(Chandan Kumar)
Director Railway Stores (IC)
Railway Board

Source: Indian Railways