The SC upheld that the Public Procurement Policy for MSEs Order ...

Public Procurement Policy for MSEs Has Legal Force Under Section 11 of MSMED Act 2006

March 8, 2025

Case Laws     Indian Laws     SC

The SC upheld that the Public Procurement Policy for MSEs Order 2012 has legal force through Section 11 of the MSMED Act 2006. While individual MSEs have no mandatory procurement right, government bodies have a statutory obligation to implement the 25% procurement mandate from MSEs. The Court directed the Review Committee to examine whether this 25% procurement would be independent of the 358 reserved items and take necessary compliance actions within 60 days. Additionally, the Court ruled that minimum turnover clauses in tenders cannot override the Procurement Policy and directed the Grievance Cell to establish appropriate limits for such clauses for MSEs within 60 days. Judicial review will primarily ensure proper functioning of statutory authorities.

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