(1) A registered or empanelled bidder, after giving reasonable opportunity of being heard, may be de-registered and removed from the list by the concerned procuring entity for violation of the provisions of the Act or for any other valid reasons as in the following cases which are only indicative and not exhaustive:-
(a) The contractor fails to abide by the terms and conditions of registration or to maintain the required technical or operational staff or equipment or there is change in its production or service line affecting its performance adversely or fails to cooperate or qualify in the review for registration;
(b) If the firm ceases to exist or is acquired by or merged with another firm, or ceases to operate in the category of requirements for which it is registered;
(c) Bankruptcy or insolvency on the part of the contractor as declared by a court of law;
(d) Debarment by the Central Government, State Governments, concerned Administrative Department or Head of Department or any other Government Agency or Body or procuring entity under them;
(e) Other than in situations of force majeure, after opening of financial bids, the contractor withdraws from the procurement process or after being declared as successful bidder, withdraws from the process or fails to enter into a procurement contract or fails to provide performance security or any other document or security required in terms of the bidding documents;
(f) If a Court of law or the Comptroller and Auditor General or the Central Bureau of Investigation or State Vigilance and Anti-Corruption Department 23 or Vigilance Commissioner or any other such competent authority or other investigating agency in respect of a case under investigation recommends such a course;
(g) Employs a government servant within two years of retirement of that government servant, who has had business dealings with the registered bidder in an official capacity before retirement;
(h) Makes any false declaration to any Department or Agency of the Government;
(i) Or any other ground, based on which the registering authority considers, that continuation of registration is not in the public interest.
(2) Whenever a firm or contractor or supplier is removed from the list of registered contractors, its registration shall automatically stand cancelled. The firms, contractors or suppliers removed from the list of registered contractors shall neither be invited to bid nor shall their bids be considered for evaluation but the firm or contractor or supplier data relating to them shall not be deleted from the portals or the computer system.
(3) Firms or contractors or suppliers removed from the list of registered contractors or their related entities shall be allowed to apply afresh for registration after the expiry of the period of removal.
(4) The procuring entities shall have the right to reassess, at any date, firms or contractors or suppliers already registered to satisfy themselves about their current financial soundness, credit worthiness, facilities and resources available with them and take appropriate action thereon in accordance with the Act and these rules.
(5) Notwithstanding anything contained in sub-rule (1) above, a registered bidder, who already holds a previous contract or award for works or supply of goods which is in progress, is found to have adopted fraudulent means or has otherwise violated the provision of the Act while submitting bids for or undertaking a different work or supply shall be debarred from participating in that bid and in all bids for future works for a period up to three years after being given a reasonable opportunity of being heard but may, if the procuring entity so decides in the public interest, not be deregistered till the completion or cancellation of such previous contracts or awards for works or supply already held.