·The Hindu·15 marks·250–350 wordsPolity

Corruption in public procurement continues to be a governance challenge in India. Discuss the institutional mechanisms available to check procurement irregularities in state-owned utilities, with reference to recent judicial interventions.

In this answer
  1. Regulatory and preventive mechanisms
  2. Accountability and enforcement mechanisms
  3. Judicial interventions

Public procurement is among the largest heads of government spending, and state-owned utilities — where a minister exercises executive control over a commercially active PSU — are especially prone to conflict of interest. The Supreme Court's May 2026 refusal to disturb a CBI probe into an alleged ₹397-crore transformer purchase by TANGEDCO [1] shows both the scale of the problem and the growing role of courts.

Regulatory and preventive mechanisms

  • General Financial Rules, 2017 (Chapter 6) codify the fundamental principles of public buying — competition, transparency and value for money — with the Department of Expenditure's Procurement Policy Division as nodal authority [2].
  • CVC guidelines and departmental vigilance officers police tender design, single-bid situations and post-award variations [3].
  • e-procurement platforms — the Central Public Procurement Portal and GeM (2016) — enable real-time price discovery and tamper-proof audit trails, shrinking discretion at the counter [4].

Accountability and enforcement mechanisms

  • Prevention of Corruption Act, 1988 (amended 2018) criminalises bribery and criminal misconduct by public servants, including the bribe-giver [5].
  • CBI, ED (PMLA) and state anti-corruption bureaus such as Tamil Nadu's DVAC investigate; CAG audit of state PSUs and legislative Committees on Public Undertakings provide ex-post scrutiny.

Judicial interventions

  • In State of West Bengal v. Committee for Protection of Democratic Rights (2010), the Court held that a High Court may direct a CBI probe under Article 226 even without State consent, without offending federalism — but such power must be used sparingly [6].
  • Applying this, the Madras HC ordered a CBI inquiry, and the Supreme Court declined the SLP under Article 136, observing "we don't need a prayer", while directing the probe to proceed uninfluenced by the HC's remarks [1].

Judicial review thus supplements, but cannot substitute, executive vigilance. Strengthening independent state vigilance bodies, full migration to e-procurement, and a comprehensive public procurement law would make integrity systemic rather than litigation-driven — advancing the constitutional promise of accountable governance.

Sources

  1. 1Supreme Court upholds CBI probe into Tamil Nadu transformer scam — Akashvani News, Prasar Bharati₹397-crore TANGEDCO transformer case; SC bench declining to interfere with the Madras HC CBI direction
  2. 2Procurement Policy Division, Department of Expenditure, Ministry of FinanceGFR 2017 Chapter 6 and administration of public procurement rules
  3. 3Guidelines on Public Procurement — Central Vigilance CommissionCVC tender and vigilance guidelines
  4. 4Government e-Marketplace (GeM) — About Usnational public procurement portal; transparency and price discovery
  5. 5Prevention of Corruption Act, 1988 — India Codestatutory basis for prosecuting corruption by public servants
  6. 6Judgments — Supreme Court of India*State of West Bengal v. Committee for Protection of Democratic Rights* (2010): High Court's Article 226 power to order a CBI probe, to be used sparingly
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