Government contracts in India are governed by the Indian Contract Act, 1872, along with constitutional provisions and specific procurement rules. Article 299 of the Indian Constitution mandates that contracts must be executed in the name of the President or Governor, and they must be in writing and signed by authorized officials. The General Financial Rules (GFR) and Public Procurement Rules focus on transparency and efficiency in procurement.
The Competition Act, 2002, prevents anti-competitive practices in government tenders, while the Prevention of Corruption Act, 1988, addresses corruption in public procurement. The Arbitration and Conciliation Act, 1996, provides a framework for dispute resolution, often via arbitration clauses in government contracts. Sector-specific laws like the Defence Procurement Procedure and National Highways Authority Act govern contracts in specialized fields.
Judicial decisions and government circulars further guide the implementation and interpretation of government contracts. Additionally, the Right to Information Act, 2005 ensures transparency in the procurement process, providing the public access to information on government contracts.
