The public entity must ensure that all the activities that form the procurement process must be permissible within the legal and regulatory framework of the country. Failure on the part of the public entity to adhere to this framework makes the project vulnerable to litigation, resulting in delays or, in some cases, even annulment of the entire process.

The legal framework of the country includes the Constitution of India, 1950; Central enactments/policies/rules/guidelines, etc.; State/Regional level enactments/by-laws/policies/guidelines/rules, etc, and local level by-laws/rules, etc.

What Does Legal Compliance Ensure?

• The project is within the purview of the law of land

• The project is permissible under general law

• The project adheres to regional legislation

• The bid process is in accordance with the general principles of natural justice

• The public entity has a legal and regulatory framework for award of the project

• The specific rights and obligations that arise out of a contract and whether such rights and obligations are legally tenable.