CSIR Guidelines for Disposal of Rejected Goods on GeM: New Framework for Government Organizations
📄 Official Guidelines Document
Download Official PDFSource: Council of Scientific & Industrial Research (CSIR)
The Council of Scientific & Industrial Research (CSIR) has issued comprehensive guidelines on October 28, 2025, to address a persistent administrative challenge faced by government organizations - the disposal of rejected goods procured through the Government e-Marketplace (GeM) portal.
Understanding the Problem
Government organizations frequently encounter situations where items procured through GeM are rejected due to non-conformity to technical specifications, inadequate quality, or manufacturing defects. These rejected items often remain abandoned in office premises by vendors for extended periods despite formal communications, leading to space congestion and increased administrative burden.
The New Framework: A Six-Step Approach
CSIR has established a structured six-step process to handle rejected goods uniformly across all laboratories and institutions:
Step 1: Timeline for Immediate Action
Upon rejection of items, the Consignee/Buyer must promptly generate the required Provisional Receipt Certificate (PRC) or Consignee's Receipt and Acceptance Certificate (CRAC) stating rejection reasons within the prescribed timeframe.
Step 2: GeM Portal Documentation
An incident must be raised on the GeM portal on the same day as CRAC generation, providing detailed reasons with necessary supporting documentation such as photographs, data sheets, or competent authority approvals.
Step 3: Formal Vendor Communication Schedule
The guidelines establish a three-tier communication system:
| Communication Type | Timeline | Format |
|---|---|---|
| First Notice | Day 0 (Rejection Day) | Standard Format |
| Reminder Notice | Day 15 | Standard Format |
| Final Notice | Day 30 | Standard Format |
Step 4: Monitoring and Record Keeping
Stores Sections must maintain registers (manual or digital) to track rejected items and monitor vendor communications and responses.
Step 5: Final Disposal Authority
If vendors fail to collect rejected items after 45 days from the first communication or 15 days from the final notice (whichever is later), organizations can initiate disposal proceedings through their Standing Disposal Committee (SDC) while informing the vendor.
Step 6: Contractual Protection
Organizations must incorporate specific conditions in their GeM bid documents and Additional Terms & Conditions (ATC).
Mandatory Clause for Bid Documents:
"No payment shall be made for rejected goods. After intimation of rejection by [Organization Name], the Seller shall be liable to remove/lift back rejected goods within 10 days of communication without any extra charge. Failure to do so will result in ground rent/warehousing charges payable by the Seller. If goods remain uncollected after 45 days, [Organization Name] shall have the right to dispose of such goods at the seller's risk and cost."
Implementation Requirements
Website Publication
All CSIR laboratories and units must display these guidelines prominently on their websites under the heading "CSIR Guidelines on Disposal of Rejected Goods Procured on GeM".
Authority and Approval
These guidelines have been issued with the concurrence of Joint Secretary and Financial Advisor (JS & FA) CSIR and approval from the Director General, CSIR.
Key Benefits for Government Organizations
- Standardized Process: The framework provides uniform procedures across all government institutions for handling rejected goods.
- Clear Timelines: Specific deadlines eliminate ambiguity in vendor communications and disposal procedures.
- Legal Protection: Contractual clauses protect government organizations from bearing costs associated with abandoned goods.
- Administrative Efficiency: Structured monitoring and documentation reduce administrative burden while ensuring accountability.
Standardized Communication Templates
The guidelines include three ready-to-use communication formats:
- Initial Notice: Requests vendor collection within 10 days of rejection
- Reminder Notice: Reiterates collection requirement after 15 days
- Final Notice: Last opportunity before disposal proceedings
Each template follows official government correspondence standards and includes necessary legal protections for the procuring organization.
Impact on Government Procurement
This framework represents a significant step toward efficient government procurement management. By establishing clear procedures for handling rejected goods, CSIR has addressed a common operational challenge that affects space utilization, administrative efficiency, and overall procurement effectiveness in government organizations.
The guidelines ensure that government entities are no longer burdened with storing rejected goods indefinitely while providing vendors with clear expectations and reasonable timeframes for item collection.
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