Tender conditions restricting eligibility to bidders with past experience in a specific state are arbitrary

Supreme Court Strikes Down Restrictive Tender Condition in Chhattisgarh Sports Kit Procurement. Judgment Upholds Constitutional Rights, Calls for Fair Competition in Public Procurement

In a landmark judgment dated October 6, 2025, the Supreme Court of India has quashed the restrictive tender condition set by the State of Chhattisgarh for the supply of sports kits to government schools. The judgment, delivered by Justices Sanjay Kumar and Alok Aradhe, upheld the principles of equality and freedom of trade as enshrined in the Constitution of India, emphasizing the doctrine of a level playing field.

Vinishma Technologies Pvt. Ltd., the appellant, challenged the impugned tender condition which mandated that bidders must have supplied sports goods worth at least Rs. 6 crores to State Government agencies of Chhattisgarh in the last three financial years. This condition was deemed arbitrary and discriminatory, excluding competent suppliers from other states, thus violating Articles 14 and 19(1)(g) of the Constitution.

The Supreme Court held that the tender condition created an artificial barrier against bidders from outside Chhattisgarh, restricting competition and fostering cartelization. It emphasized that public procurement should aim to secure quality goods at competitive prices, encouraging wider participation and preventing market distortion.

The State of Chhattisgarh had argued the necessity of such conditions due to the Maoist-affected nature of the region, claiming it would ensure timely delivery and quality compliance. However, the court found this justification untenable, stating that the tender for sports kits did not involve security-sensitive equipment and logistical challenges could be met through local supply chains.

The judgment is expected to have significant implications for public procurement processes across India, reinforcing the importance of fair competition and non-discrimination. The State Government of Chhattisgarh has been directed to issue fresh tender notices, ensuring compliance with constitutional mandates.

Bottom Line:

Tender conditions restricting eligibility to bidders with past experience in a specific state (Chhattisgarh) are arbitrary, discriminatory, and violative of Articles 14 and 19(1)(g) of the Constitution of India.

Statutory provision(s): Articles 14, 19(1)(g), and 19(6) of the Constitution of India.

Vinishma Technologies Pvt. Ltd. v. State Of Chhattisgarh, (SC) : Law Finder Doc Id # 2789401