Integrity Pact

Balmer Lawrie & Co. Limited (BL) hereinafter referred to as "The Principal".
And
_________________________________________, hereinafter referred to as "The Bidder/Contractor"

Preamble

The Principal intends to award, under laid down organizational procedures, contract/s for t h e
Engagement of CFA cum Secondary Transporter Services at any of the locations – Jajpur or Dhenkanal, Odisha
[GLK/TE24/029]
The Principal values full compliance with all relevant laws of the land, rules, regulations, economic use of
resources, and of fairness/transparency in its relations with its Bidder(s) and /or Contractor(s).

In order to achieve these goals, the Principal will appoint an Independent External Monitor (IEM), who
will monitor the tender process and the execution of the contract for compliance with the principles
mentioned above.

Section 1- Commitments of the Principal

1. The Principal commits itself to take all measures necessary to prevent corruption
and to observe the following principles: -

a. No employee of the Principal, personally or through family members, will in

connection with the tender for, or the execution of a contract, demand, take a
promise for or accept, for self or third person, any material or immaterial benefit
which the person is not legally entitled to.

b. The Principal will, during the tender process treat all Bidder(s) with equity and reason.
The Principal will in particular, before and during the tender process, provide to
all Bidder(s) the same information and will not provide to any Bidder(s)
confidential/additional information through which the Bidder(s) could obtain an
advantage in relation to the tender process or the contract execution.

c. The Principal will exclude from the process all known prejudiced persons.

2. If the Principal obtains information on the conduct of any of its employees which is a
criminal offence under the IPC/PC Act, or if there be a substantive suspicion in this
regard, the Principal will inform the Chief Vigilance Officer and in addition can initiate
disciplinary actions.

Section2- Commitments of the Bidder(s)/ Contractor(s)

1. The Bidder(s)/Contractor(s) commit himself to take all measures necessary to prevent

corruption. He commits himself to observe the following principles during his
participation in the tender process and during the contract execution.

a. The Bidder(s) / Contractor(s) will not, directly or through any other

persons or firm, offer, promise or give to any of the Principal's employees
involved in the tender process or the execution of the contract or to any third
 person any material or other benefit which he/she is not legally entitled to, in
order to obtain in exchange any advantage of any kind whatsoever during the
tender process or during the execution of the contract.

b. The Bidder(s)/Contractor(s) will not enter with other Bidders into any
undisclosed agreement or understanding, whether formal or informal. This
applies in particular to prices, specifications, certifications, subsidiary
contracts, submission or non-submission of bids or any other
actions to restrict competitiveness o r t o i n t r o d u c e c a r t e l i z a t i o n
i n t h e b i d d i n g process.

c. The Bidder(s)/Contractor(s) will not commit any offence under the

relevant IPC/PC Act; further the Bidder(s) /Contractors will not use
improperly, for purposes of competition or personal gain, or pass on to others,
any information or document provided by the Principal as part of the
business relationship, regarding plans, technical proposals and business
details, including information contained or transmitted electronically.

d. The Bidder(s)/Contractor(s) of foreign origin shall disclose the name and

address of the Agents/representatives in India, if any. Similarly, the
Bidder(s)/Contractor(s) of Indian Nationality shall furnish the name and
address of the foreign principals, if any. Further details as mentioned in the
"Guidelines on Indian Agents of Foreign Suppliers" shall be disclosed by the
Bidder(s)/Contractor(s). Further, as mentioned in the Guidelines all the
payments made to the Indian agent/representative have to be in Indian
Rupees only. Copy of the "Guidelines on Indian Agents of Foreign Suppliers'
as annexed and marked as Annexure - A

e. The Bidder(s)/Contractor(s) will, when presenting his bid, disclose any

and all payments he has made, is committed to or intends to make to agents,
brokers or any other intermediaries in connection with the award of the
contract.

2. The Bidder(s)/Contractor(s) will not instigate third persons to commit offences outlined
above or be an accessory to such offences.

Section 3: Disqualification from tender process and exclusion from future contracts

If the Bidder(s)/Contractor(s), before award or during execution has committed a

transgression through a violation of Section 2, above or in any other form such as to put his
reliability or credibility in question, the Principal is entitled to disqualify the Bidder(s)
/Contractor(s) from the tender process or act as per the procedure mentioned in the "Balmer
Lawrie Policy on Blacklisting". Copy of the "Balmer Lawrie Policy on Blacklisting" is annexed
and marked as Annexure - B.

Section 4: Compensation for Damages

 a) If the Principal has disqualified the Bidder(s) from the tender process prior to
the award according to Section 3, the Principal is entitled to demand and
recover the damages equivalent to Earnest Money Deposit/Bid Security.
b) If the Principal has terminated the contract according to Section 3, or if the
Principal is entitled to terminate the contract according to Section 3, the Principal
shall be entitled to demand and recover from the Contractor liquidated damages
of the Contract value or the amount equivalent to Performance Bank Guarantee.

Section 5: Previous Transgression

a. The Bidder declares that no previous transgressions occurred in

the last three years with any other company in any country conforming to the
anti-corruption approach or with any other public sector enterprise in India
that could justify his exclusion from the tender process.
b. If the bidder makes incorrect statement on this subject, he can be disqualified
from the tender process or action can be taken as per the procedure mentioned
in "Balmer Lawrie Policy on Blacklisting".

Section 6: Equal treatment of all Bidders/Contractors/Subcontractors.

a. The Bidder(s)/Contractor(s) undertake(s) to demand from all subcontractors a

commitment in conformity with this Integrity Pact, and to submit it to the
Principal before contract signing.
b. The Principal will enter into agreements with identical conditions as this
one with all bidders, contractors and subcontractors.
c. The Principal will disqualify from the tender process all bidders who do
not sign this Pact or violate its provisions.

Section 7: Criminal charges against violation Bidder(s)/ Contractor(s)/Subcontractor(s).

If the Principal obtains knowledge of conduct of a Bidder, Contractor or Subcontractor, or of an

employee or a representative or an associate of a Bidder, Contractor or Subcontractor which
constitutes corruption, or if the Principal has substantive suspicion in this regard, the Principal will
inform the same to the Chief Vigilance Officer.

Section 8: Independent External Monitor/Monitors

(a) The Principal appoints competent and credible Independent External Monitor for
this Pact. The task of the Monitor is to review independently and objectively,
whether and to what extent the parties comply with the obligations under this
agreement.

(b) The Monitor is not subject to instructions by the representatives of the parties and
performs his functions neutrally and independently. He reports to the Chairman
& Managing Director, BL.

(c) The Bidder(s)/Contractor(s) accepts that the Monitor has the right to access without
restriction to all project documentation of the Principal including that provided by
the Contractor. The Contractor will also grant the Monitor, upon his request and
demonstration of a valid interest, unrestricted and unconditional access to his
project documentation. The same is applicable to Subcontractors. The Monitor is
 under contractual obligation to treat the information and documents of the
Bidder(s)/Contractor(s)/Subcontractor(s) with confidentiality.

(d) The Principal will provide to the Monitor sufficient information about all meetings
among the parties related to the Project provided such meetings could have an
impact on the contractual relations between the Principal and the Contractor. The
parties offer to the Monitor the option to participate in such meetings.

(e) As soon as the Monitor notices, or believes to notice, a violation of this agreement,
he will so inform the Management of the Principal and request the Management to
discontinue or take corrective action, or to take other relevant action. The monitor
can in this regard submit non-binding recommendations. Beyond this, the Monitor
has no right to demand from the parties that they act in a specific manner, refrain
from action or tolerate action.

(f) The Monitor will submit a written report to the CMD, BL within 8 to 10 weeks from
the date of reference or intimation to him by the Principal and, should the
occasion arise, submit proposals for correcting problematic situations.

(g) Monitor shall be entitled to compensation on the same terms as being extended
to / provided to Independent Directors on the BL Board.

(h) If the Monitor has reported to the CMD, BL, a substantiated suspicion of an offence
under relevant IPC/PC Act, and the CMD, BL has not, within the reasonable time
taken visible action to proceed against such offence or reported it to the Chief
Vigilance Officer, the Monitor may also transmit this information directly to the
Central Vigilance Commissioner.

(i) The word 'Monitor' would include both singular and plural.

Section 9 - Pact Duration

This pact begins when both parties have legally signed it. It expires for the Contractor 10 months after
the last payment under the contract, and for all other Bidders 6 months after the contract has been
awarded.

Note: (The periods may be extended to suit the individual unit’s requirements)

If any claim is made / lodged during this time, the same shall be binding and continue to be valid
despite the lapse of this pact as specified above, unless it is discharged / determined by CMD, BL.

Section 10 – Disputes

In the event of any dispute between the management and the contractor, in case, both the parties are
agreeable, they may try to settle dispute through mediation before the panel of IEM’s in a time bound
manner. In case, the dispute remains unresolved even after mediation by the panel of IEM’s. the
organization may take further action as per terms and conditions of the contract.
 A person signing Integrity Pact shall not approach the Courts while representing the matters to IEM’s
and he/she/they will await IEM’s decision in the matter.

Section 11 - Other provisions

a) This agreement is subject to Indian Law. Place of performance and jurisdiction is the
Registered Office of the Principal, i.e. Kolkata.
b) Changes and supplements as well as termination notices need to be made in writing.
Side agreements have not been made.
c) If the Contractor is a partnership or a consortium, this agreement must be signed by
all partners or consortium members.
d) Should one or several provisions of this agreement turn out to be invalid, the remainder
of this agreement remains valid. In this case, the parties will strive to come to an
agreement to their original intentions.

__________________________________
(For & on behalf of the Principal) (For & On behalf of Bidder/Contractor)
(Office Seal) (Office Seal)

Place ------------------
Date ------------------

Witness 1:
(Name & Address)
_____________________________

_____________________________

_____________________________

_____________________________

Witness 2:
(Name & Address)
_____________________________

_____________________________

_____________________________

_____________________________
 Annexure-A

GUIDELINES FOR INDIAN AGENTS OF FOREIGN SUPPLIERS

1.0 There shall be compulsory registration of agents for all global (Open) Tender and Limited
Tender. An agent who is not registered with BL shall apply for registration in the
prescribed Registration Form.

1.1 Registered agents will file an authenticated photocopy duly attested by a Notary Public/
Original certificate of the Principal confirming the agency agreement and giving the
status being enjoyed by the agent and the commission/ remuneration/ retainer-ship
being paid by the principal to the agent before the placement of order by BL.

1.2 Wherever the Indian representatives have communicated on behalf of their principals
and the foreign parties have stated that they are not paying any commission to the Indian
agents, and the Indian representative is working on the basis of salary or as retainer, a
written declaration to this effect should be submitted by the party (i.e. Principal) before
finalizing the order.
.

2.0 DISCLOSURE OF PARTICULARS OF AGENTS/ REPRESENTATIVES IN

INDIA, IF ANY.

2.1 Tenderers of Foreign nationality shall furnish the following details in their offer:

2.1.1 The name and address of the agents/representatives in India, if any, and the extent of
authorization and authority given to commit the Principals. In case the agent/
representative be a foreign Company, it shall be confirmed whether it is real substantial
Company and details of the same shall be furnished.

2.1.2 The amount of commission/ remuneration included in the quoted price(s) for such
agents/representatives in India.

2.1.3 Confirmation of the Tenderer that the commission/ remuneration if any, payable to his
agents/ representatives in India, may be paid by BL in Indian Rupees only.

2.2 Tenderers of Indian Nationality shall furnish the following details in their offers:

2.2.1 The name and address of the foreign Principals, if any, indicating their nationality as
well as their status, i.e, whether manufacturer or agents of manufacturer holding the
Letter of Authority of the Principal specifically authorizing the agent to make an offer
in India in response to tender either directly or through the agents/representatives.

2.2.2 The amount of commission /remuneration included in the price(s) quoted by the tenderer
for himself.

2.2.3 Confirmation of the foreign principals of the Tenderer that the commission/ remuneration,
if any, reserved for the Tenderer in the quoted price(s), may be paid by BL in India in
equivalent Indian Rupees on satisfactory completion of the Project or supplies of Stores
and Spares in case of operation items.
2.3 In either case, in the event of contract materializing, the terms of payment will provide
for payment of the commission/ remuneration, if any, payable to the agents
/representatives in India in Indian Rupees on expiry of 90 days after the discharge of
the obligations under the contract.

2.4 Failure to furnish correct and detailed information as called for in paragraph 2.0 above
will render the tender concerned liable to rejection or in the event of a contract
materializing, the same liable to termination by BL. Besides this, there would be a
penalty of banning business dealings with BL or damage or payment of a named sum.

****
 Annexure-B
Balmer Lawrie Policy on Black Listing
Introduction

In the endeavor to maintain and foster ethical and corruption free business
environment, the Supply Chain/Purchase/Contract & Procurement Procedure is being
streamlined to include provision for banning or putting on holiday list
vendor/supplier/contractor/consultant indulging in Corrupt, Fraudulent, Coercive and
Collusive practices including laxity in services. In view of the complexity of the issue,
it has become necessary to develop a comprehensive Policy encompassing the views
of all stakeholders, our experience of Supply chain/ Purchase/ Project Execution /
Services.
In the course of contracting, one has to deal with various vendors / suppliers /
contractors /consultants who are expected to adopt and maintain highest standards and
a high degree of ethics and integrity, commitments and sincerity towards the work
undertaken by them. Any aberration, deviation and violation from the expected
standards of supplies/services/ behaviour of the contracting agencies need to be dealt
with appropriately so that it becomes a deterrent for all.
This policy is aimed at blacklisting the errant vendors and service providers by
following laid down procedure.
Any business restriction on any person or group involves legal scrutiny and civil
consequences and therefore, necessitating to provide an opportunity to the defendant
to defend its case. The Banning Procedure given here in under is to be used for all
Supply Chain/Contracts/Services and Purchases functions across Balmer Lawrie &
Co. Ltd.
Balmer Lawrie Purchase Manual provides for evaluation of performance of Vendors/
Suppliers /Contractors/ Consultants. Further, Fraud Prevention Policy of Balmer
Lawrie also covers vendors, suppliers, contractors, service providers, consultants or
any other external agency/person having business relationship and/or associated with
the company in any manner, as well as their representatives.
This Policy contains provision for putting a Vendor/Supplier/ Contractor/Consultant
on Suspension and/or on banning list if such agency indulged in corrupt/fraudulent/
collusive/coercive practice or failed to render services as per acceptable standards.

A. Definitions

A.1 "Corrupt Practice" means the offering, giving, receiving or soliciting, directly or
indirectly, anything of value to improperly influence the actions in selection process
or in contract execution.
"Corrupt Practice" also includes any omission or misrepresentation that may mislead
or attempt to mislead so that financial or other benefit may be obtained or an
obligation avoided.
A.2
"Fraudulent Practice" means and includes any act or omission committed by agency
or with his connivance or by his agent by misrepresenting/ submitting false
documents and/or false information or concealment of facts or to deceive in order to
influence a selection process or during execution of contract/order.
A.3 "Collusive Practice amongst bidders(prior to or after bid submission)" means a
scheme or arrangement designed to establish bid prices at artificial non- competitive
levels and to deprive Balmer Lawrie of the benefits of free and open competition.
A.4 "Coercive practice" means impairing or harming or threatening to impair or harm
directly or indirectly, any agency or its property to influence the improperly actions of
an agency, obstruction of any investigation or auditing of a procurement process.

A.5 Poor Services means services which are not acceptable to Balmer Lawrie in terms of
specifications, quality, quantity, timeliness and not as per the verbal/written advice of
dealing Executive/Officer of Balmer Lawrie.

A.6 Vendor/Supplier/Contractor/Consultant/Bidder" is herein after referred as "Agency"

A.7 "Appellate Authority” shall mean Committee of Directors consisting of Director

(Finance) and Director (I/C) for SBUs/Functions under respective Directors.

A.8 "Competent Authority “shall mean the authority, who is competent to take final
decision for Suspension of business dealing with an Agency/ies and Banning of
business dealings with Agency/ ies and shall be the "Director" concerned.

A.9 "Allied Agency” shall mean all the concerns within the sphere of effective influence
of banned/ suspended agencies. In determining this, the following factors may be
taken into consideration:
(a) Whether the management is common.
(b) Majority interest in the management is held by the partners or directors of
banned/suspended firm.
(c) Substantial or majority shares are owned by banned/suspended agency and by
virtue of this it has a controlling voice.

A.10 "Investigating Agency" shall mean any department or unit of Balmer Lawrie
investigating into the conduct of Agency/party and shall include the Vigilance
Department of Balmer Lawrie, Central Bureau of Investigation, State Police or any
other agency set up by the Central or state government having power to investigate.

B. Actions against bidder(s) indulging in corrupt / fraudulent / collusive / coercive

practice

B.1 The Competent Authority for Banning of any agency is the Director (In-Charge) of
the SBU/Function.
B.2 Irregularities noticed during the evaluation of the bids:
If it is observed during bidding process/bids evaluation stage that a bidder has
indulged in corrupt/fraudulent/collusive/coercive practice, the bid of such Bidder(s)
shall be rejected and its Earnest Money Deposit (EMD)shall be forfeited.
Further, such agency shall be banned for future business with Balmer Lawrie & Co.
Ltd. For a period specified in para B2.2 below from the date of issue of banning order.
A Vendor can also be banned for future business if he fails to supply
products/services as per standards as prescribed in the tender or to the satisfaction of
the company and it’s representative (s).

B.2 Irregularities noticed after award of contract

B.2.1
(i) During execution of contract:
If an agency, is found to have indulged in corrupt / fraudulent/ collusive /coercive
practices, during execution of contract, the agency shall be banned from entering into
any for future business with Balmer Lawrie for a period specified in para B2.2 below
from the date of issue of banning order.
The concerned order (s) / contract(s) where corrupt / fraudulent/collusive / coercive
practices or failure to provide standard products/services is observed, shall be
suspended with immediate effect by SBU / Function Head whereby the supply/ work/
service and payment etc. will be suspended. Action shall be initiated for putting the
agency on banning.
After conclusion of process, the order (s) / contract (s) where it is concluded that such
irregularities have been committed shall be terminated and Contract cum Performance
Bank Guarantee (CPBG) submitted by agency against such order (s) / contract (s)
shall also be encashed. The amount that may have become due to the contractor on
account of work already executed by him satisfactorily shall be payable to the
contractor and this amount shall be subject to adjustment against any amounts due
from the contractor under the terms of the contract. Any amount due on account of
supply of poor quality of products/services shall not be payable. In case of poor
quality of supplies then no amount is payable to the vendor. In case the Company get
the supply of same goods from another party for the higher cost for meeting quality
requirements such cost also will be recovered from the errant supplier / vendor.

(ii) After execution of contract and during Defect liability period (DLP) /
Warranty / Guarantee period:
If an agency / vendor / service provider is found to have indulged in corrupt /
fraudulent / collusive / coercive practices, or supply of poor quality of goods /
products / services, after execution of contract and during DLP/ Warranty / Guarantee
Period, the agency shall be banned for future business with Balmer Lawrie for a
period specified in para B2.2 below from the date of issue of banning order.
Further, the Contract cum Performance Bank Guarantee (CPBG) submitted by agency
against such order (s)/ contract (s) shall be encashed.
(iii) After expiry of Defect liability period (DLP)/ Warranty/Guarantee Period:
If an agency is found to have indulged in corrupt /fraudulent/ collusive/coercive
practices or supply of poor quality products /services after expiry of Defect liability
period (DLP)/Warranty/Guarantee Period, or during pendency of the service/products,
contract for supply of goods/products/services, the agency shall be banned for future
business with Balmer Lawrie for a period specified in para B2.2 below from the date
of issue of banning order
B.2.2 Period of Banning
Banning period shall be reckoned from the date of banning order and ordinarily the
period for which agency is banned should not be less than 6 months and should not
exceed 3 years. However, in extraordinary circumstances, the period can be more than
3 years depending on the gravity of violations.
In exceptional cases where the act of vendor/ contractor is a threat to the National
Security, the banning shall be for indefinite period.

B.2.3 Exceptional Cases:

B.2.3.1 However as an exception, the ongoing order (s) / contract (s) where corrupt /
fraudulent / collusive / coercive practice has been observed, or there has been a failure
 to adhere to the standards, the agency may be allowed to complete the supply / job in
case of following situations:
a) No adverse performance of the job as per scope of work (performance to be
reviewed on quarterly basis) and;
b) The supply / job is of critical nature in terms of adverse impact on the Project
Completion Schedule and/or prospective revenue generation.
However, the discretion for the same rests solely with the company / its representative
(s) and the vendor / contractor / supplier shall not have any right to demand the same.

B.2.3.2 The approval for allowing the agency to complete the supply / job is to be
obtained from Director concerned based on the detailed deliberation /
recommendation of the committee consisting of Head of SCM / Purchase, A&F, SBU
/ Function Head of the SBU. Such recommendation shall be put up to Director
concerned through Corporate A&F Department and Corporate Legal department with
their comments.
Further, all such cases shall also be put up to Board of Directors for their information.
After approval of competent authority to allow the agency to complete the supply /
job, the agency will be allowed to execute the order/contract and payment shall also
be made as per provision of order/contract.

B.2.3.3 The Contract cum Performance Bank Guarantee (CPBG). of such agency
against the order(s)/contract(s) where agency is allowed to complete the supply/job in
above exceptional case shall not be en-cashed on this ground. The contract shall be
executed as per terms and conditions of the contract. However, the agency shall be put
on banning list from the date of banning order.
Also, in the event the contract is terminated owing to poor quality of products/services
the CPBG may be encashed by the company.

C. Effect of banning on other ongoing contracts/tenders

C.1 If an agency is put on holiday/ banned, such agency should not be considered
in ongoing tenders/future tenders
C.2 However, if such an agency is already executing other order(s)1 contract (s)
where no corrupt/fraudulent/ collusive/coercive practice is found, the agency
should be allowed to continue till its completion without any further increase
in scope except those incidental to original scope mentioned in the contract.
C.3 If an agency is put on the Banning List during tendering and no irregularity is
found in the case under process :
C.3.1 After issue of the enquiry / bid / tender but before opening of Technical Bid,
the bid submitted by the agency shall be ignored.
C.3.2 After opening Technical bid but before opening the Price bid, the Price bid of
the agency shall not be opened and BG/EMD submitted by the agency shall be
returned to the agency.
C.3.3 After opening of price, BG/EMD made by the agency shall be returned; the
offer of the agency shall be ignored & will not be further evaluated. If the
agency is put on banning list for fraud/ mis-appropriation of facts committed
in the same tender/other tender where errant agency emerges as the lowest
(Ll), then such tender shall also be cancelled and re-invited.
D. Procedure for Suspension of Bidder

D.l Initiation of Suspension

Action for suspension of business dealing with any agency/(ies) shall be
initiated By SCM/Purchase Department of the SBU/Function when:

i. Complaint from the indenting users’ department / employees against the

unsatisfactory / inferior / substandard service / product given by the Service
Provider / Contractor / Vendor.

ii. Corporate Vigilance Department based on the fact of the case gathered during
investigation by them recommend for specific immediate action against the
agency.

iii. Corporate Vigilance Department based on the input from investigating agency,
forward for specific immediate action against the agency.

iv. Non-performance of Vendor / Supplier / Service provider / Contractor /

Consultant leading to termination of Contract / Order

v. The vendors / bidders / suppliers quoting wrong and misleading information

while quoting for a Tender and the same is found out by the Tender
Committee while preparing the TCR can also suspend such agency/bidder
under these rules.
D.2 Suspension Procedure:

D.2.1 The order of suspension would operate initially for a period not more than six
months and is to be communicated to the agency and also to Corporate
Vigilance Department. Period of suspension can be extended with the
approval of the Competent Authority by two months at a time with a ceiling of
six months pending a conclusive decision to put the agency on banning list.
In the cases of supply of poor quality products / rendering poor services, a
recommendation for suspension can be ordered by a committee comprising
Indenting department head, Purchase / SCM head & SBU / Function Head.

D.2.2 The suspension order shall also be hosted on Balmer Lawrie's intranet and a
copy will be forwarded to all SBU Heads by CSM/Purchase Department of the
SBU/Function. During the period of suspension, no new business dealing may
be held with the agency.

D.2.3 Period of suspension shall be accounted for in the final order passed for
banning of business with the agency.

D.2.4 The decision regarding suspension of business dealings should also be

communicated in writing to the agency.

D.2.5 If a prima-facie, case is made out that the agency is guilty on the grounds
which can result in banning of business dealings, proposal for issuance of
suspension order and show cause notice shall be put up to the Competent
Authority. The suspension order and show cause notice must include that (i)
 The agency is put on suspension list and (ii) Why action should not be taken
for banning the agency for future business from Balmer Lawrie.
The competent authority to approve the suspension will be same as that for
according approval for banning.

D.2.6 The process for putting the agency on suspension list shall be completed
within 30 days from the date of receipt of such intimation as mentioned in
clause no. D.1.

D.3 Effect of Suspension of business:

Effect of suspension on other on-going / future tenders will be as under:

D.3.1 No enquiry / bid / tender shall be entertained from an agency as long as the
name of agency appears in the Suspension List.

D.3.2 If an agency is put on the Suspension List during tendering:

D.3.2.1 After issue of the enquiry / bid / tender but before opening of Technical bid,
the bid submitted by the agency shall be ignored.
D.3.2.2 After opening Technical bid but before opening the Price bid, the Price bid of
the agency shall not be opened and BG/EMD submitted by the agency
shall be returned to the agency.

D.3.2.3 After opening of price, BG/EMD made by the agency shall be returned; the
offer of the agency shall be ignored & will not be further evaluated. If the
agency is put on Suspension list for fraud / mis-appropriation of facts
conducted in the same tender/other tender where errant agency emerges as the
lowest (Ll), then such tender shall also be cancelled and re-invited.

D.3.3 The existing contract (s)/order(s)under execution shall continue.

D.3.4 Tenders invited for procurement of goods, works and services shall have
provision that the bidder shall submit an undertaking to the effect that (i)
neither the bidder themselves nor their allied agency/(ies) are on banning list
of Balmer Lawrie or the Ministry of Petroleum and Natural Gas and(ii) bidder
is not banned by any Government department/ Public Sector Enterprise. This
shall be part of NIT.

E. Procedure to be followed in case of corrupt/ fraudulent/collusive/coercive practice:

(i) If Project Manager/Project In-Charge / HOD / Dealing Purchase Officer/SCM

Executive or any other authority of Balmer Lawrie, receive/acquire conclusive
evidence of any corrupt/ fraudulent/collusive/coercive practice/ activity, the
concerned should immediately initiate action for putting
Agency/vendor/supplier/service provider on banning list as per extant
procedure.

(ii) In case of a corrupt, fraudulent, collusive and coercive practices, a committee

consisting of concerned Head of SCM, A&F and Head of SBU will examine
the case in detail.
(iii) In case committee recommends for banning an agency, the committee will put
up its recommendation to the concerned Director through Corporate A&F
Department & Corporate Legal along with a draft Show Cause notice
providing a final opportunity to the alleged defaulter to defend his case.

The show cause notice should contain all the allegations towards the breach
committed by Agency including mentioning the provisions of the tender so
breached and seeking explanation as to why the action should not be taken
against the agency as per provisions of tender. All the supporting documents
also need to be provided to the agency along with Show Cause notice.
If the Agency desires for personal hearing, the same can also be given.
However, the above provision for personal hearing shall not be made a part of
Show Cause notice
(iv) After obtaining approval from the concerned Director, SCM/Purchase
Department of the SBU will issue the Show Cause notice to the concerned
agency giving an opportunity to respond within 15 days.
In response to the Show Cause notice if the agency seeks any additional
document(applicable only once), the same should be provided to the agency at
the earliest but not later than7days. However, the period to respond in such a
case will be appropriately adjusted. However, the agency cannot and shall not
be allowed to seek documents repeatedly and seek extension of time on this
ground to respond.

(v) On receipt of reply in response to Show Cause notice, SCM/ Purchase

Department will prepare a proposal covering point wise reply to issues brought
out by the agency in their reply to Show Cause notice and forward their final
recommendation for keeping the agency on Banning list or otherwise through
SBU Head for obtaining the approval of the Director concerned after legal
vetting through Corporate Legal department.
In case the committee recommends for putting the agency on banning list, the
draft Speaking Order to be issued to the agency with reasons for putting on
banning list will also be submitted along with their recommendation.
In case Corporate Legal department make any contrary observation, the file
may be referred back to , SCM / Purchase Department for further deliberations
and recommendation on the observation made by the Corporate Legal
Department and further submission to Competent Authority.
While according the approval, reasons are to be recorded by the Competent
Authority. These reasons shall also be put up by the committee along with
their recommendations. In case Competent Authority does not agree with
recommendation of the committee, it will record the reasons for the same. The
decision of competent authority shall be final.

(vi) After obtaining approval from the concerned Director, SCM/Purchase

department will issue a letter in the form of Speaking Order to the agency
conveying the decision of putting the agency on the banning list along with
reasons.

(vii) The banning order shall also be hosted on Balmer Lawrie’s intranet and a copy
will be forwarded to all SBU/Function Heads by SCM/Purchase Department
 of the SBU/Function. A list of all agencies put on banning will be maintained
at Balmer Lawrie Intranet/website, mentioning the period of operation of such
ban.
Further, if a communication has been received from the Ministry of Petroleum
& Natural Gas or other PSUs to ban the agency from dealing with any PSE,
the agency shall be automatically put in the banned list.

(viii) The above process of banning should be completed within 04months from
initiation of case by concerned department responsible for invitation of bid.
(ix) Pending the outcome of suspension of work and Show Cause notice, a parallel
tender can be invited and processed till Price Bid Opening (PBO) stage to save
time required for re-tendering. Eventually, this tender to be concluded or
otherwise based on the outcome of process of Show Cause notice.

(x) After issuance of banning order, action for termination of order(s)/contract (s)
where it has been concluded that such irregularities have been committed and
for encashment of Performance Bank Guarantee (PBG) against such order (s)/
contract (3),will be taken by concerned SCM/Purchase department as per
extant DoA. The amount that may have become due to the contractor on
account of work already executed by him shall be payable to the contractor
and this amount shall be subject to adjustment against any amounts due from
the contractor under the terms of the contract.

No risk and cost provision will be enforced in such cases i.e. The vendor /
contractor is not entitled for any compensation on account of costs already
incurred etc., by him.

(xi) An order for banning/ suspension passed for a certain specified period shall
deemed to have been automatically revoked on the expiry of that specified
period and it will not be necessary to issue a specific formal order of
revocation. However, the listing of the defaulting vendor/supplier/service
provider on the banned companies list shall stay permanently along with the
period/duration.

(xii) While putting the bidder on banning list as per the procedure, the holding
company, subsidiary, joint venture, sister concerns, group/division of the
errant agency shall not be considered for putting on banning list in case certain
ongoing project is being executed by the same agency or its associates / allied
agencies without any adverse observation. In all other cases banning of an
organization will automatically apply to Allied Agencies.

(xiii) In case of contract (s)consortium/ JV, of the consortium is put on banning list,
in that case other ongoing contract(s)order (s) on consortium/JV shall continue
subject to satisfactory performance. Further, order (s)/ contract (s) where such
fraudulent / corrupt / collusive/ coercive practice have been noticed shall be
terminated and Contract cum Performance Bank Guarantee (CPBG) submitted
by agency against such order(s)/contract (s) shall also be encashed. No risk
and cost provision will be enforced in such cases. However, in exceptional
cases as mentioned at Para B2.3 hereinabove, the agency may continue after
approval from competent authority as mentioned therein.
 In case of fraudulent /corrupt /collusive/coercive practice by any member or
leader itself, consortium including errant member &leader will be put on
banning list and shall not be allowed to participate in the ongoing/future
tenders in either as an individual bidder or as a member of consortium/JV.
(xiv) In case any Project Management Consultant (PMC) detects the fraudulent
/corrupt / collusive / coercive practice during evaluation and execution of any
contract and recommendations made to Balmer Lawrie, the procedure
mentioned hereinabove is to be followed after obtaining the documents from
PMC for putting the agency on banning list.

(xv) The banning shall be with prospective effect i.e future business dealings

F. Appeal against the Decision of the Competent Authority

F.l The agency may file an appeal against the order of the Competent Authority
for putting the agency on banning list. The appeal shall be filed to Appellate
Authority. Such an appeal shall be preferred within one month from the date
of receipt of banning order.

F.2 Appellate Authority would consider the appeal and pass appropriate order
which shall be communicated to the Agency as well as the Competent
Authority.

F.3 Appeal process may be completed within 45 days of filing of an appeal with
the Appellate Authority.

G. Wherever there is a contradiction with respect to the terms 'Fraud Prevention

Policy’, and ‘Policy on black listing in case of
Corrupt/Fraudulent/Collusive/ Coercive Practice', the provisions of' the policy on black
listing in case of Corrupt/Fraudulent/ Collusive/Coercive Practice’ shall prevail.

H. The above procedures supersede all earlier circulars/clarifications on the subject.

I. This Policy on black Listing in case of Corrupt / Fraudulent / Collusive / Coercive

Practice /rendering poor quality products / services (Except Introduction, Sub-para
B.2.3,E,H and I) shall be made a part of tender document.

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