BNS Section 336 - Public Procurement Fraud

Whoever, in connection with public tenders or procurement, engages in bid-rigging, collusion, kickbacks, or falsification to obtain undue advantage.

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Non-bailable, Cognizable

Official Text

Colluding to manipulate tender outcomes, falsifying eligibility, or offering/accepting kickbacks to secure public contracts.

Legal Analysis

Elements to Prove:

  • Agreement or conduct to distort competition.
  • Unlawful advantage in tender process.
  • Benefit or intended benefit from manipulation.

Potential Defenses:

  • Independent competitive conduct.
  • Compliance with procurement rules.
  • No concerted action.

Practical Examples

What Constitutes the Offense:

Cartel bidding, cover bids, splitting contracts to avoid thresholds, bribery in awards.

What Doesn't Constitute:

Competitive bidding with transparent disclosures, lawful consortiums, performance-based incentives disclosed.

Punishment

Imprisonment up to 7 years, and Fine