ANNEXURE-III
INTEGRITY PACT
BETWEEN
Hindustan Steelworks Construction Limited hereinafter referred to as “The Principal”
(which expression, unless repugnant to the context thereof, shall mean and include its
legal representatives, heirs and assigns)
AND
………………………………………...hereinafter referred to as “The Bidder/Contractor”
(which expression, unless repugnant to the context thereof, shall mean and include its
legal representatives, heirs and assigns)
Preamble
The Principal intends to award, under laid down organizational procedures, contract(s)
for (Name of the contract)……………(hereinafter referred to as the
‘Project’). The Principal necessarily requires full compliance with all relevant laws of
the land, rules, regulations, economic use of resources and of fairness/ transparency
in its relations with its Bidder(s) and/or Contractor(s).
In order to achieve these goals, the Principal will appoint an Independent External
Monitor (IEM), who will monitor the tender process and the execution of the contract
for compliance with the Integrity Pact by all parties concerned, for all works covered in
the Project.
To meet the purpose aforesaid both the parties have agreed to comply this Integrity
Agreement (hereinafter referred to as "Integrity Pact" or "Pact"), the terms and
conditions of which shall also be read as integral part and parcel of the Tender/Bid
documents and Contract between the parties.
NOW, THEREFORE, in consideration of mutual covenants contained in this Pact, the
parties hereby agree as follows and this Pact witnesses as under:
Section 1 – Commitments of the Principal
Obligations on Principal
The Employer is committed to follow the principle of Transparency, Equity and
Competitiveness in Public Procurement.
(1) The Principal commits itself to take all measures necessary to prevent corruption
and to observe the following principles: -
a. No employee of the Principal, personally or through family members or through
any other channel, will in connection with the tender for or the execution of a
contract, demand, take a promise for or accept, for self or third person, any
material or immaterial benefit, which the person is not legally entitled to.
b. The Principal will, during the tender process treat all Contractor(s)/Bidder(s) with
equity and reason. The Principal will in particular, before and during the tender
process, provide to all Contractor(s)/Bidder(s) the same information and will not
provide to any Contractor(s)/Bidder(s), confidential/additional information
through which the Contractor(s)/Bidder(s) could obtain an advantage in relation
to the tender process or the contract execution.
Signature of Tenderer Signature of HSCL 31
www.hsclindia.in
Digitally signed by RAM
CHANDRA MAJHI
Date: 2025.02.17 17:04:29 IST
c. The Principal will exclude from the process all known prejudiced persons. The
Principal shall obtain bids from only those parties who have been short-listed or
pre-qualified or through a process of open advertisement/ web publishing or any
combination thereof.
(2) If the Principal obtains information on the conduct of any of its employees,
Contractor(s) and/or Bidder(s), which is a criminal offence under the IPC/PC Act,
or if there be a substantive suspicion in this regard, the Principal will inform the
Chief Vigilance Officer or the principal will take remedial actions as per
department/conduct rules and subject to its discretion, can additionally
initiate disciplinary actions.
(3) The Principal will enter into agreements with identical conditions with all
Contractor(s)/Bidder(s) for the different Work Packages in the aforesaid
Project.
(4) The Principal will disqualify from the tender process all Contractor(s)/Bidder(s)
with estimated cost of work put to tender of Rs 5.0 crores and above, who do not
sign this Pact or violate its provisions.
Section 2 – Commitments of the Bidder(s) / Contractor(s)
Obligations on Bidder/Contractor
To accept and comply with the Integrity Agreement in letter and spirit and further
agree that execution of the said Integrity Agreement shall be separate and
distinct from the main contract, which will come into existence when tender/bid is
finally accepted by Employer. Duration of the Integrity Agreement shall be in the
line with section 8 of the Integrity Agreement.
Bidder/Contractor acknowledge that in the event of breach of the Integrity
Agreement Employer shall have unqualified, absolute and unfettered right to take
action under section 3.
(1) It is required that each Bidder/Contractor (including their respective officers,
employees and sub-contractors) adhere to the highest ethical standards, and
report to the Government / Department all suspected acts of fraud or corruption
or Coercion or Collusion of which it has knowledge or becomes aware, during
the tendering process and throughout the negotiation or award of a contract.
(2) The Bidder(s) / Contractor(s) commit(s) itself/themselves to take all measures
necessary to prevent corruption. He commits himself to observe the following
principles during his participation in the tender process and during the contract
execution.
(a) The Bidder(s) / Contractor(s) will not, directly or through any other person or
firm offer, promise or give to any of the Principal’s employees involved in the
tender process or the execution of the contract any material or other benefit
which he/she is not legally entitled to, in order to obtain in exchange any
advantage, of any kind whatsoever, during the tender process or during the
execution of the contract.
(b) The Bidder(s)/Contractor(s) will not enter with other Bidders into any
undisclosed agreement or understanding, whether formal or informal. This
applies in particular to prices, specifications, certifications, subsidiary
contracts, submission or non-submission of bids or any other actions to
restrict competitiveness or to introduce cartelization in the bidding process.
32 Signature of Tenderer Signature of HSCL www.hsclindia.in
Digitally signed by RAM
CHANDRA MAJHI
Date: 2025.02.17 17:04:29 IST
(c) The Bidder(s)/Contractor(s) will not commit any offence under the relevant
IPC/PC Act. Further the Bidder(s)/Contractor(s) will not use improperly, for
purpose of competition or personal gain, or pass on to others, any information
or document provided by the Principal as part of the business relationship,
regarding plans, technical proposals and business details, including
information contained or transmitted electronically.
(d) The Bidder(s) / Contractor(s) of foreign origin shall disclose the name and
address of the Agents/representatives in India, if any. Similarly the Bidder(s)
/ Contractor(s) of Indian Nationality shall furnish the name and address of
the foreign principals, if any. Either the Indian agent on behalf of the foreign
principal or the foreign principal directly could bid in a tender but not both. It
shall be incumbent on the Indian agent and the foreign principal to Adhere to
the relevant guidelines of Government of India, issued from Time to time
regarding availing services of Indian Agents for foreign Suppliers.
Further details as mentioned in the “Guidelines on Indian Agents of Foreign
Suppliers” shall be disclosed by the Bidder(s) / Contractor(s). Further, as
mentioned in the Guidelines all the payments made to the Indian
agent/representative have to be in Indian Rupees only.
(e) The Bidder(s) / Contractor(s) will, when submitting his bid, disclose any and
all payments he has made, is committed to or intends to make to agents,
brokers or any other intermediaries in connection with the award of the
contract.
(f) The Bidder(s) / Contractor(s) to disclose any transgression with any other
company that may impinge on the anti-corruption principle.
(3) The Bidder(s) / Contractor(s) will not instigate third persons to commit offences
outlined above or be an accessory to such offences.
(4) The Bidder(s)/Contractor(s) will not, directly or through any other person or firm
indulge in fraudulent practice means a wilful misrepresentation or omission of
facts or submission of fake/forged documents in order to induce public official to
act in reliance thereof, with the purpose of obtaining unjust advantage by or
causing damage to justified interest of others and/or to influence the procurement
process to the detriment of the Government interests.
(5) The Bidder(s)/Contractor(s) will not, directly or through any other person or firm
use Coercive Practices (means the act of obtaining something, compelling an
action or influencing a decision through intimidation, threat or the use of force
directly or indirectly, where potential or actual injury may befall upon a person,
his/ her reputation or property to influence their participation in the tendering
process).
(6) The Bidder(s)/Contractor(s) signing IP shall not approach the Courts while
representing the matters to IEM and he/she will await their decision in the matter.
(7) The Bidder(s)/Contractor(s), in case of sub-contracting, the Principal contractor
shall take the responsibility of the adoption of IP by the sub-contractor.
Section 3: Disqualification from tender process and/or exclusion from future
contracts.
Without prejudice to any rights that may be available to the Employer under law or
the Contract or its established policies and laid down procedures, the Employer shall
have the following rights in case of breach of this Integrity Pact by the
Signature of Tenderer Signature of HSCL 33
www.hsclindia.in
Digitally signed by RAM
CHANDRA MAJHI
Date: 2025.02.17 17:04:29 IST
Bidder(s)/Contractor(s) and the Bidder/ Contractor accepts and undertakes to respect
and uphold the Employer absolute right:
(1) If the Bidder(s) / Contractor(s), before awarding the Project or during execution
has committed a transgression by violating Section 2 above or in any other form
so as to put his reliability or credibility in question, the Principal, at its sole
discretion, after giving proper opportunity to the bidderis entitled to disqualify the
Bidder(s) / Contractor(s) from the tender process or terminate the contract, if
already awarded or exclude the Bidder/Contractor from future contract award
processes, for that reason, without prejudice to any other legal rights or remedies
available to the Principal under the relevant clauses of GCC/SCC of the
tender/contract. The imposition and duration of the exclusion will be determined
by the severity of transgression and determined by the Principal. Such exclusion
may be forever or for a limited period as decided by the Principal.
(2) If the Contractor(s)/Bidder(s) has committed a transgression through a violation
of any of the terms under Section 2 above or in any other form such as to put his
reliability or credibility into question, the Principal will also be entitled to exclude
such Contractor(s)/Bidder(s) from future tenders/contract award processes. The
imposition and duration of the exclusion will be determined by the Principal,
keeping in view the severity of the transgression. The severity will be determined
by the circumstances of the case, in particular, the number of transgressions
and/or the amount of the damage.
(3) If it is observed after payment of final bill but before the expiry of validity of
Integrity Pact that the contractor has committed a transgression, through a
violation of any of the terms under Section 2 above or any other term(s) of this
Pact, during the execution of contract, the Principal will be entitled to exclude the
contractor from further tender/contract award processes.
(4) The exclusion will be imposed for a minimum period of six (6) months and a
maximum period of three (3) years.
(5) If the Contractor(s)/Bidder(s) can prove that he has restored/recouped the
damage to the Principal caused by him and has installed a suitable corruption
prevention system, the Principal may, at its sole discretion, revoke or reduce the
exclusion period before the expiry of the period of such exclusion.
Section 4: Compensation for Damages
(1) If the Principal has disqualified the Bidder(s)/Contractor(s) from the tender
process prior to the awarding of the Project according to Section 3, the Earnest
Money Deposit (EMD)/ Bid Security furnished, if any, along with the offer, as per
terms of the Invitation of Tender, shall also be forfeited. The
Bidder(s)/Contractor(s) understands and agrees that this will be in addition to the
disqualification and exclusion of the Contractor(s)/Bidder(s) as may be imposed
by the Principal, in terms of Section 3 above.
(2) If, at any time after the awarding of the Project, the Principal has terminated the
contract according to Section 3, or if the Principal is entitled to terminate the
contract according to Section 3, the Security Deposit/Performance Bank
Guarantee furnished by the contractor, if any, as per the terms of the
NIT/Contract shall be forfeited without prejudice to any other legal rights and
remedies available to the Principal under the relevant clauses of General/ Special
Conditions of Contract.
34 Signature of Tenderer Signature of HSCL www.hsclindia.in
Digitally signed by RAM
CHANDRA MAJHI
Date: 2025.02.17 17:04:29 IST
The Contractor(s)/Bidder(s) understands and agrees that this will be in addition to the
disqualification and exclusion of the Bidder(s)/Contractor(s), as may be imposed by
the Principal in terms of Section 3 above.
Section 5: Previous transgression
(1) The Bidder(s)/Contractor(s) herein declares that it has committed no
transgressions in the last 5 years with any other Company in any country
conforming to the anti-corruption approach as detailed herein or with
government/ Central Government or State Government or any other Public Sector
Enterprise in India that could justify its exclusion from the tender process.
(2) If at any point of time during the tender process or after the awarding of the
Contract, it is found that the Bidder(s)/Contractor(s) has made an incorrect
statement on this subject, he can be disqualified from the tender process or if, as
the case may be, that the Contract, is already awarded, it will be terminated for
such reason and the Bidder(s)/Contractor(s) can be black listed in terms of
Section 3 above.
(3) If the Bidder/Contractor can prove that he has resorted / recouped the damage
caused by him and has installed a suitable corruption prevention system, the
Employer may, at its own discretion, revoke the exclusion prematurely.
Section 6: Independent External Monitor / Monitors
(1) The Principal shall, in case where the Project Value is in excess of Rs 5.0 crore
and above, appoint competent and credible Independent External Monitor(s) with
clearance from Central Vigilance Commission. The Monitor shall review
independently, the cases referred to it to assess whether and to what extent the
parties concerned comply with the obligations under this Integrity Pact.
(2) In case of non-compliance of the provisions of the Integrity Pact, the complaint/
non-compliance is to be lodged by the aggrieved party with the Nodal Officer only,
as shall be appointed by the MD, HSCL. The Nodal Officer shall refer the
complaint/ non-compliance so received by him to the aforesaid Monitor.
(3) The Monitor will not be subject to any instructions by the representatives of the
parties and will perform its functions neutrally and independently. The Monitor
shall report to the Managing Director, HSCL.
(4) The Bidder(s) / Contractor(s) accepts that the Monitor shall have the right to
access, without restriction, all Project documentation of the Principal including
that provided by the Contractor. The Contractor will also grant the Monitor, upon
his/her request and demonstration of a valid interest, unrestricted and
unconditional access to its project documentation. The Monitor is under
contractual obligation to treat the information and documents of the Bidder(s) /
Contractor(s) with confidentiality.
(5) The Principal will provide to the Monitor, sufficient information about all meetings
among the parties related to the Project, provided such meetings could have an
impact on the contractual relations between the Principal and the Contractor.
(6) As soon as the Monitor notes, or believes to note, a violation of this Pact, he will
so inform the Principal and request the Principal to discontinue and/or take
corrective action, or to take other relevant action(s). The Monitor can in this
regard submit non-binding recommendations. However, beyond this, the Monitor
has no right to demand from the parties that they act in a specific manner and/or
refrain from action and/or tolerate action.
Signature of Tenderer Signature of HSCL 35
www.hsclindia.in
Digitally signed by RAM
CHANDRA MAJHI
Date: 2025.02.17 17:04:29 IST
(7) The Monitor will submit a written report to the MD, HSCL within 4 to 6 weeks
from the date of reference or intimation to it and, should the occasion arise,
submit proposals for corrective actions for the violation or the breaches of the
provisions of the agreement noticed by the Monitor.
(8) If the Monitor has reported to the MD, HSCL, of a substantiated suspicion of an
offence under relevant IPC/PC Act, and the MD, HSCL, has not, within the
reasonable time taken visible action to proceed against such offence or reported it
to the Chief Vigilance Officer, the Monitor may also transmit this information
directly to the Chief Vigilance Officer, HSCL.
(9) The word ‘Monitor’ means Independent External Monitor and includes both
singular and plural forms.
(10) For ensuring the desired transparency and objectivity in dealing with the
complaints arising out of any tendering process, the matter should be examined
by the full panel of IEMs jointly as far as possible, who would look into the
records, conduct an investigation, and submit their joint recommendations to the
Management.
(11) IEM should examine the process integrity, they are not expected to concern
themselves with fixing of responsibility of officers. Complaints alleging malafide
on the part of any officer of the organisation should be looked into by the CVO of
the concerned organisation.
(12) The role of IEM is advisory, would not be legally binding and it is restricted to
resolving issued raised by an intending bidder regarding any aspect of the tender
which allegedly restricts competition or bias towards some bidders. At the same
time, it must be understood that IEMs are not consultants to the Management.
Their role is independent in nature and the advice once tendered would not be
subject to review at the request of the organisations.
(13) Issues like warranty / guarantee etc. should be outside the purview of IEMs.
(14) The role of the CVO of the organization shall remain unaffected by the presence
of IEMs. A matter being examined by the IEMs can be separately investigated by
the CVO in terms of the provisions of the CVC Act or Vigilance Manual, If a
complaint is received by him/her or directed to him/her by the commission
Section 7 – Criminal charges against violating Bidder(s)/Contractor(s)/
Subcontractor(s)
If the Principal obtains knowledge of conduct of a Bidder/Contractor or any employee
or a representative or an associate of a Bidder/Contractor, which constitutes a
criminal offence under the IPC/PC Act, or if the Principal has substantive suspicion in
this regard, the Principal will forthwith inform the same to the Chief Vigilance Officer,
HSCL.
Section 8 – Duration of the Integrity Pact
This Pact shall come into force when both parties have legally signed it. The Pact shall
expire, in case of the Contractor(s), 3 (three) months after the last payment under
the Contract is made and in case of the unsuccessful Bidder(s), 2 (two) months after
the contract for the project has been awarded.
36 Signature of Tenderer Signature of HSCL www.hsclindia.in
Digitally signed by RAM
CHANDRA MAJHI
Date: 2025.02.17 17:04:29 IST
If any claims is made / lodged during this time, the same shall be binding and
continue to be valid despite the lapse of this pact as specified above, unless it is
discharged / determined by MD of HSCL.
The Bidder(s)/Contractor(s), however, understands and agrees that even upon the
completion of the Project and/or the last payment under the Contract having been
made, if any transgression/violation of the terms of this Pact comes/is brought to the
notice of the Principal, it may, subject to its discretion, blacklist and/or exclude such
Bidder(s)/Contractor(s) as provided for in Section 3, without prejudice to any other
legal right or remedy so available to the Principal.
Section 9 – Other provisions
(1) This agreement is subject to Indian Law. Place of performance and jurisdiction is
the Registered Office of the Principal, i.e. Kolkata.
(2) Changes and supplements as well as termination notices need to be made in
writing.
(3) If the Bidder/Contractor is a partnership or a consortium, this agreement must be
signed by all partners or consortium members.
(4) Should one or several provisions of this agreement turn out to be invalid, the
remainder of this agreement shall remain valid and binding. In such a case, the
parties will strive to come to an agreement in accordance to their original
intentions.
(5) Wherever he or his as indicated in the above sections, the same may be read as
he/she or his/her, as the case may be.
(6) It is agreed term and condition that any dispute or difference arising between the
parties with regard to the terms of this Integrity Agreement / Pact, any action
taken by the Principal in accordance with this Integrity Agreement! Pact or
interpretation thereof shall not be subject to arbitration
________________________ ___________________
(For & On behalf of the Principal) (For & On behalf of
Bidder/ Contractor)
(Office Seal) (Office Seal)
Place_________
Date _________
Witness 1:
(Name& Address) _______________________
_______________________
Witness 2:
(Name & Address) ______________________
______________________
Signature of Tenderer Signature of HSCL 37
www.hsclindia.in
Digitally signed by RAM
CHANDRA MAJHI
Date: 2025.02.17 17:04:29 IST
