Anti-corruption watchdog Central Vigilance Commission has asked government departments and central public sector undertakings to follow an open and transparent process to award work contracts rather than on nomination basis.
The move comes after the CVC received reports of alleged corruption in certain work contracts given to private firms mainly by the central public sector undertakings (CPSUs) and a few other government departments, officials said.
Contracts worth several thousand crores of rupees are implemented by different central government departments in a year. Considering the large amount of money involved, these work contracts are considered susceptible to corruption.
In a latest missive to secretaries of all central government departments, the CVC said it was receiving representations reporting instances of award of contracts and procurement in a non-transparent manner and on nomination basis by several departments/CPSUs.
It cited its earlier directive and said the contracts needed to be given in a transparent and open manner.
"The award of contracts/procurements/projects on nomination basis without adequate justification amounts to a restrictive practice eliminating competition, fairness and equity," the CVC said, asking all government departments to adhere to these instructions.