ANV Digi Solutions Pvt. Ltd. vs. Government e-Marketplace through its CEO and connected matters
Background
A seller registered on the Government e-Marketplace (GeM) was suspended for 365 days after it was found to have shared a common mobile number with another seller across 28 common bids, which GeM treated as anti-competitive bidding. The seller didn't contest the underlying violation but argued the punishment was excessive under GeM's own published policy.
Decision Breakdown
The Court found that GeM's own Incident Management Policy classified this type of violation (Clause 29 of the General Terms and Conditions) as a "severe deviation," capping suspension at 90 days for repeat violations, not the 365 days actually imposed, which GeM had tried to justify under a different, inapplicable "grave deviation" clause meant for cases involving fraud, forged documents, or third-party complaints. The 365-day suspension was reduced to 90 days (already served), with GeM directed to restore the seller's account, while the Court expressly left open whether the underlying bidding conduct was actually improper.
Lesson Learnt
When a regulator or platform imposes a penalty, check that it's actually applying its own published policy correctly to your category of violation: courts will intervene if the punishment exceeds what the authority's own rules allow, even without deciding whether you were at fault at all.