Policy for Watch list and Defaulter list in GeM.

1. Highest standards of conduct are expected from both buyers and sellers as
far as Terms and Conditions of the GeM are concerned. Following policy is being
laid out, for dealing with deviations from Terms and Conditions. Sellers and
buyers who are violating GeM Terms and Conditions will be notified through two
lists.

a. Watch list
b. Defaulter list

A. Watch list

Whenever an instance of deviation is brought to the attention of the GeM

authorities by any stake holder, the concerned buyer/seller will be issued a show
cause notice through registered email. During the pendency of the reply and
subsequent administrative action, the buyer/seller name will be put under watch
list.
The buyer/seller whose name is in watch list, will not be prevented from
doing any GeM transactions. But whenever such seller/buyer is making any
transaction, such as getting selected for direct purchase, L1, quoting in bids,
reverse auction, placing order, an alert shall be made visible to the buyer/seller
indicating that the seller is in watch list.

B. Defaulter list.

A buyer/seller name will be in the default list, if

a. If he fails to reply to the e mail within the stipulated time.

b. If the competent authority decides that, he has made deliberate attempts
to breach the terms and conditions of GeM.

Once in defaulter list, the seller shall be disabled from transacting on GeM
for a period ranging from 15 days to one year depending on the seriousness of the
lapse. If a seller is disabled for three different occasions, a fourth such event will
lead to permanent debarment on GeM.

2. Buyer Defaults

Following shall be considered as Buyer defaults.

1. Refusing to accept the goods without giving any reasons.

2. Rejecting, received goods (in full or in part) without giving any reason.
3. Refusing to issue CRAC even after the stipulated time.
4. Not making payments within the stipulated time.
(Contd….)
3. Procedure for handling defaulters.

Following procedure will be followed in dealing with violation of Terms and

Conditions.

A. Sellers

1. On detection of the potential default, the seller will be issued a show

cause notice through his registered email, requiring him to file reply
within a maximum period of 7 days. The email shall require him to
explain why he shall not be treated as a defaulter for alleged violation of
GeM Terms and Conditions.
2. Pending the reply, buyer/seller will be put under watch list.
3. If no reply is filed within the stipulated period, his name will be taken to
the defaulter list indefinitely, leading to the deactivation of the account.
4. On receipt of the reply, the competent authority will be deciding,
whether the default is deliberate, if so, his name will put in defaulter list
for an appropriate time, ranging from 15 days to one year. This
administrative action shall be completed within 48 hrs of receipt of
reply.

B. Buyers

1. On receipt of a representation from the seller , the buyer will be issued

an e mail at his registered email, seeking clarification or appropriate
action on the alleged default. Pending the reply, buyer/seller will be put
under watch list.
2. If no reply is filed within the stipulated period, the buyer will be notified
under watch list, till necessary action taken by the buyer for completing
the transaction online.

4. Competent Authority
All officers of GeM of the rank of Deputy Secretary and above shall be
competent authority for issue of notices and receiving responses in the specific
sectors allotted to them. Five Sectors for this purposes is being notified as
below.
1. Electronics and Electricals, including softwares.
2. Automobiles and Taxi Services
3. Paper Products and Office supplies (excluding Electronic items)
4. Structural goods, Heavy goods and machineries
5. All services except Taxi services.

5. Performance of the buyer/seller in adhering to the Terms and conditions will

form part of the rating of the buyer/seller.