Vinishma Technologies Pvt. Ltd. Vs State of Chhattisgarh & Anr. (Supreme Court of India)
Tender Clause Favouring Local Suppliers Struck Down – SC Upholds Level Playing Field- ‘Local Supply’ Criterion in Tender Violates Articles 14 & 19(1)(g) – No Monopoly for Local Vendors – SC Orders Fresh Tender for School Sports Kits
The Supreme Court delivered a significant judgment reinforcing the constitutional principle of equality & free competition in public procurement. The Bench comprising Justice Sanjay Kumar & Justice Alok Aradhe struck down a tender condition imposed by the State of Chhattisgarh which mandated prior experience of supply within the State itself, terming it arbitrary, unreasonable & violative of Articles 14 & 19(1)(g) of the Constitution.
The controversy arose from three tender notices issued on 21.07.2025 by the Department of School Education, Chhattisgarh, for the supply of Sports Kits to students of Government Primary, Upper Primary, & High & Higher Secondary Schools across 33 districts, collectively valued at over ₹40 crores. The tenders were floated through the Government-e-Marketplace (GeM) portal under the Samagra Shiksha project.
The appellant, Vinishma Technologies Pvt. Ltd., a company with prior experience of supplying sports materials to other State Governments & the NCT of Delhi, challenged the tender condition that required bidders to have supplied sports goods worth at least ₹6 crore (cumulative) to State Government agencies of Chhattisgarh in the past three financial years. The company contended that such a requirement was discriminatory & exclusionary, effectively barring competent suppliers from outside the State & fostering cartelisation.
