Central Information Commission
Col S C Sharma vs Government E Marketplace (Gem) on 22 April, 2026
केन्द्रीय सूचना आयोग
Central Information Commission
बाबा गंगनाथ मागग, मुननरका
Baba Gangnath Marg, Munirka
नई निल्ली, New Delhi - 110067
File No: CIC/GEMDC/A/2025/626966
Col S C Sharma
.....अपीलकर्ाग /Appellant
VERSUS
बनाम
CPIO : Government e-Marketplace ....प्रनर्वािीगण /Respondent
(GeM), 3rd floor, Tower 2, Jeevan
Bharti Building, Parliament Street,
Delhi - 110001.
Date of Hearing : 21-04-2026
Date of Decision : 21-04-2026
INFORMATION COMMISSIONER : Khushwant Singh Sethi
Relevant facts emerging from appeal:
RTI application filed on : 08-05-2025
CPIO replied on : 27-05-2025
First appeal filed on : 29-05-2025
First Appellate Authority's order : 12-06-2025
2nd Appeal dated : 17-06-2025
CIC/GEMDC/A/2025/626966 Page 1 of 8
Information sought:
1. The Appellant filed an RTI application dated 08-05-2025 for seeking the information and the CPIO furnished a reply to the Appellant on 27-05-2025. The Information sought and reply provided in this regard is as under:
"Information Sought by applicant Information provided
1. Provide a copy of the official notification or approval received Please refer to list of exempted sellers point (a) of Vendor from the Department of Expenditure Assessment Policy (https://assets- (DoE), Ministry of Finance, or any bg.gem.gov.in/resources/upload/shared_doc/gem-2024-
other relevant department vendor-validation-policy-v-3_1704955566.pdf) and Rule authorizing GeM to exempt bidders 170 (i) of GFR, which provides for exemption from Bid with an annual turnover of ₹500 Security in case seller is registered with the Central crore or more from submission of Purchase Organisation. Earnest Money Deposit (EMD).
2. If no such approval exists, provide the details of the internal decision-
making authority (committee name, official names and designations) that approved the inclusion of the said clause in GeM General Terms and Conditions (GTC) Version 1.23 regarding EMD exemption to companies having annual turnover of ₹500 crore or more.
3. Provide certified copies of the meeting minutes, internal file notes, or policy documents that led to the CIC/GEMDC/A/2025/626966 Page 2 of 8 "Information Sought by applicant Information provided introduction of the EMD exemption for having annual turnover ₹500 Cr.
or more.
4. Provide the legal or regulatory basis on which GeM claims that turnover-based exemption from EMD is compliant with Rule 170 of the General Financial Rules (GFR) 2017.
5. Has GeM received any written Currently, the system captures issue details raised by sellers objections, complaints, or without classification under specific nomenclatures such as representations from MSEs or "MSE" or "Non-MSE." Additionally, all issues related to vendors regarding the EMD Earnest Money Deposit (EMD) are grouped into a single exemption for high-turnover bidders bucket. As a result, granular identification or segregation since January 2024? If yes, please of specific issue types asked above is not feasible with the provide copies and details of action existing data structure and therefore cannot be shared. taken.
As per section 8(1)(d) of RTI act 2005, Information including commercial confidence, trade secrets or intellectual
6. Provide a list of companies that property, the disclosure of which would harm the have availed of the EMD exemption competitive position of a third party, unless the competent under the high turnover clause authority is satisfied that larger public interest warrants the (₹500 crore or more) from March disclosure of such information, and, as per section 8(1)(e) of 2024 to date, including their names, RTI act 2005, Information available to a person in his GST numbers, and the total number fiduciary relationship, unless the competent authority is of tenders participated in using this satisfied that the larger public interest warrants the exemption.
disclosure of such information, the such disclosure of third party information is exempted under RTI Act 2005.
CIC/GEMDC/A/2025/626966 Page 3 of 8"Information Sought by applicant Information provided
7. Provide any communication Please refer to list of exempted sellers point (a) of Vendor between GeM and the Ministry of Assessment Policy (https://assets- MSME or Department for bg.gem.gov.in/resources/upload/shared_doc/gem-2024- Promotion of Industry and Internal vendor-validation-policy-v-3_1704955566.pdf) and Rule Trade (DPIIT) regarding the 170 (i) of GFR, which provides for exemption from Bid conformity of this exemption with Security in case seller is registered with the Central Purchase existing MSE or Startup policies Organization.
Please refer to list of exempted sellers point (a) of Vendor
8. Provide a copy of the current Assessment Policy (https://assets- Vendor Validation Policy (Version bg.gem.gov.in/resources/upload/shared_doc/gem-2024-
3.2 or latest) and specify the legal vendor-validation-policy-v-3_1704955566.pdf) and Rule basis for equating vendor 170 (i) of GFR, which provides for exemption from Bid assessment with exemption from Security in case seller is registered with the Central Purchase EMD as per Rule 170 of GFR. Organization.
Please refer to list of exempted sellers point (a) of Vendor
9. Has any external legal opinion Assessment Policy (https://assets- been sought by GeM before bg.gem.gov.in/resources/upload/shared_doc/gem-2024-
implementing the EMD exemption vendor-validation-policy-v-3_1704955566.pdf) and Rule for high-turnover bidders? If yes, 170 (i) of GFR, which provides for exemption from Bid please provide a copy of the opinion Security in case seller is registered with the Central received. Purchase Organization. 10. Provide data on how many MSE bidders have submitted EMD for
1732 MSE bidders have submitted EMD for GeM tenders GeM tenders since March 2024 and since March 2024 and 58344 bidders have been exempted how many have been exempted based on their MSE or Startup status.
based on their MSE or Startup status.
11. Please provide a copy of the official approval/notification/order CIC/GEMDC/A/2025/626966 Page 4 of 8 "Information Sought by applicant Information provided issued by the competent authority Please refer to list of exempted sellers point (a) of Vendor (Department of Expenditure or any Assessment Policy (https://assets- other Ministry/Department) bg.gem.gov.in/resources/upload/shared_doc/gem-2024- authorizing GeM to exempt bidders vendor-validation-policy-v-3_1704955566.pdf) and Rule with an annual turnover of ₹500 170 (i) of GFR, which provides for exemption from Bid crore or more from submitting Security in case seller is registered with the Central Purchase Earnest Money Deposit (EMD), as Organization. mentioned in GeM General Terms and Conditions (GTC) Version 1.23 Please refer to list of exempted sellers point (a) of Vendor dated 05th March 2025.
Assessment Policy (https://assets-
bg.gem.gov.in/resources/upload/shared_doc/gem-2024-
12. If no such approval has been vendor-validation-policy-v-3_1704955566.pdf) and Rule obtained, kindly confirm whether 170 (i) of GFR, which provides for exemption from Bid GeM independently decided to...
Security in case seller is registered with the Central introduce this exemption and Purchase Organization.
provide the names and designations of the officials/committees responsible for authorizing the said clause.
13. Please provide the file notings, internal correspondence, and policy documents that led to the inclusion Please refer to list of exempted sellers point (a) of Vendor of the EMD exemption clause for Assessment Policy (https://assets-
high-turnover bidders in GeM GTC.
bg.gem.gov.in/resources/upload/shared_doc/gem-2024- vendor-validation-policy-v-3_1704955566.pdf) and Rule 170
14. Is there any communication
(i) of GFR, which provides for exemption from Bid Security in between GeM and the Department case seller is registered with the Central Purchase of Expenditure, Ministry of Finance, Organization."
or Ministry of MSME seeking approval or consultation regarding this exemption? If yes, please CIC/GEMDC/A/2025/626966 Page 5 of 8 "Information Sought by applicant Information provided provide copies of such communication.
2. Being dissatisfied, the Appellant filed a First Appeal dated 29-05-2025. The FAA vide its order dated 12-06-2025, upheld the reply given by the CPIO.
3. Feeling aggrieved and dissatisfied, Appellant approached the Commission with the instant Second Appeal.
Relevant Facts emerged during Hearing:
The following were present:-
Appellant: Absent.
Respondent: Mr. Davinder Chodha, Director & CPIO; Mr. Kamlendra Rawat and Mr. Saroj Shankar, Senior Consultant, attended the hearing in person.
4. The Respondent submitted that the appellant sought copy of the official notification or approval received from the Department of Expenditure (DoE), Ministry of Finance, or any other relevant department authorizing GeM to exempt bidders with an annual turnover of ₹500 crore or more from submission of Earnest Money Deposit (EMD) etc. The respondent also submitted that they had provided the website link to access the Vendor Assessment Policy, and further stated that Rule 170 (i) of GFR, provides for exemption from Bid Security in case seller is registered with the Central Purchase Organization.
Decision:
5. The Commission, after adverting to the facts and circumstances of the case, hearing the respondent and perusal of the records, observes that the respondent had not provided an appropriate reply to the appellant for point nos.
CIC/GEMDC/A/2025/626966 Page 6 of 89, 13 and 14. The Commission finds, that the information regarding legal opinion sought by GeM before implementing the EMD exemption is exempted U/s 8(1)(e) of the RTI Act, 2005. Also, the respondent had not provided the file notings, internal correspondence, and policy documents that led to the inclusion of the EMD exemption clause for high-turnover bidders in GeM. The Commission also finds, that the respondent had provided appropriate reply for the remaining points. Therefore, the respondent is directed to provide a revised reply to the appellant for point nos. 9, 13 and 14 - claiming relevant exemptions under the RTI Act, 2005, where applicable, incorporating copy of the policy documents that led to the inclusion of the EMD exemption clause for high- turnover bidders in GeM and communication between GeM and the Department of Expenditure, Ministry of Finance, or Ministry of MSME seeking approval regarding this exemption, after redacting third-party information such as officers' names, members names etc. in consonance with Section 10 of the RTI Act, 2005. The respondent shall provide the aforesaid revised reply to the appellant, within 15 days from the date of receipt of this order under intimation to the Commission - both through post and via uploading on http://dsscic.nic.in/online-link-paper-compliance/add. Accordingly, the appeal is disposed of.
Copy of the decision be provided free of cost to the parties.
(Khushwant Singh Sethi) (खुशवन्त स िंह ेठी) Information Commissioner ( ूचना आयुक्त) निनां क/Date: 21.04.2026 CIC/GEMDC/A/2025/626966 Page 7 of 8 Authenticated true copy S. K. Chitkara (एस. के. नचटकारा) Dy. Registrar (उप-पंजीयक) 011-26107026 Copy To:
1. The CPIO Government e-Marketplace (GeM), 3rd floor, Tower 2, Jeevan Bharti Building, Parliament Street, Delhi - 110001.
2. The FAA, Government e-Marketplace (GeM), 3rd floor, Tower 2, Jeevan Bharti Building, Parliament Street, Delhi - 110001
3. Col S C Sharma CIC/GEMDC/A/2025/626966 Page 8 of 8 Recomendation(s) to PA under section 25(5) of the RTI Act, 2005:-
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