Directions with regard to proper utilization of public funds by Government officials and Departments issued qua Chhattisgarh Store Purchase Rules, 2002 as amended in 2004

1. The interesting question which arises in this petition is, “Whether the Municipal Corporations are bound to purchase items mentioned in Schedule – 1 attached to the Chhattisgarh Store Purchase Rules, 2002 (as amended in 2004) (henceforth ‘the Rules’) only from the companies approved by the Chhattisgarh State Industrial Development Corporation (henceforth ‘the CSIDC’) at the rates approved by the CSIDC”.

2. To appreciate the issue involved, it would be apposite to mention that the State of Chhattisgarh formulated the said Rules, which were amended in 2004. For the purpose of this case we are mainly concerned with Rules 2 and 3.

3. Rule 2 of the Rules reads as follows:

“2. These Rules shall be applicable to purchases made by the administrative departments.”

Rule 2.1 of the Rules reads as follows:

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