How Cartels Rig Government Tenders in India: 5 Dirty Tricks You Need to Know

🚨 How Cartels Rig Government Tenders in India: 5 Dirty Tricks You Should Know

In India, tenders — especially government ones — are supposed to be fair, transparent, and competitive. But in reality? Sometimes it's like a rigged game where the winner is already decided.

Every year, lakhs of crores worth of tenders are floated by central and state departments. And some of them never reach deserving bidders because a few powerful players — or cartels — know how to game the system.

Whether you’re a new entrepreneur or a seasoned contractor, knowing these shady tactics can help you stay alert — and even report unethical practices.

Let’s break it down 👇

1. Information Hiding: The Secret Tender Invite Only Cartel Knows About

One common trick? Not everyone gets the invite.

Some tenders are quietly floated, shared only within a circle of friendly bidders. There’s no wide announcement, no proper publication. The cartel insiders get the details — like timelines, specifications, and submission methods — while the rest of the world stays clueless.

This is often called “limited circulation” or “selective tendering,” but when done with cartel intent, it’s just pure rigging.

Real-world impact: New and smaller vendors never even hear about opportunities — let alone compete.

2. Technical Disqualification: The Tender Terms Maze

Have you ever tried to fill out a government tender? It’s like reading the terms and conditions of a 200-page app you never agreed to. 🧾

Cartels often intentionally complicate technical eligibility — putting vague, contradicting, or absurd requirements into the tender documents:

• “Vendor must have completed 3 similar projects worth ₹12.25 crore in 19 months.”

• “Attach notarized copy of ISO certificate in blue ink only.”

Miss even one detail? You’re out.

Insiders, of course, are pre-informed. They know exactly what ticks the box.

3. Muscle Power & Threats: Scaring New Players Away

In some regions — especially in local tenders — cartels use direct intimidation.

New bidders may receive:

• Anonymous calls warning them to withdraw

• Unexplained visits from “local contacts”

• Or worse, post-bidding harassment

Truth bomb: This happens even today in sectors like construction, logistics, and mining tenders.

4. Website Sabotage: Server Slowdowns During Bidding

Here’s a modern twist — digital rigging.

Just when public bidding begins, the tender website suddenly crashes or slows down. Outsiders can’t submit documents or log in, while insiders already have “backup access” or have submitted early.

This usually happens in:

• Last-minute high-value e-bids

• Power, transport, or IT tenders

Is it technical error or cartel manipulation? Hard to say. But when it’s frequent, it’s fishy.

5. Post-Award Subletting: Big Fish Passing It to Their Friends

Some tenders require high technical or financial qualifications, which small players can’t meet. But once the tender is won by a big player — they simply subcontract the work to smaller or less-qualified firms.

While subcontracting is legal, using it to keep outsiders out of the main bidding is unethical.

It creates a false illusion: “Only big firms can win,” but the real executor is someone else.

So, Why Should You Care?

Because clean tenders = better roads, hospitals, infrastructure, and services.

If cartels continue to dominate tenders, we all lose — taxpayers, genuine entrepreneurs, and the economy.

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💬 Let’s Talk: What Other Tricks Have You Seen?

If you’ve seen or heard of other ways tenders get rigged — especially in your city or industry — drop it in the comments 👇

Let’s make this a space for sharing, not silence.

📣 Final Word from Shunyatax Global

🧾 Shunyatax Global says that financial clarity starts with informed decisions.
We provide end-to-end tax filing, NRI services, and investment planning for individuals and businesses.

Our expertise includes:

• Auditing Services in India to keep your bids clean and compliant

• Bookkeeping Services in India to ensure your financials are always tender-ready

• Guidance on Business Setup in Dubai if you're exploring offshore contracts or bids

🚀 Start your journey with us today:
👉 📞 Book a Consultation: Shunyatax Global: 1-1 Confidential Advisory
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