Government’s GeM portal faces corruption allegations despite aim for transparent procurement

The Government e-Marketplace (GeM) portal, launched in 2016 to digitise procurement across government departments, is under scrutiny following allegations of corruption and inefficiency. Though the platform was introduced to ensure transparent and streamlined purchases, recent reports suggest that it may be falling short of these goals.

Mandated for all central and state government purchases, the portal is reportedly driving up procurement costs and limiting vendor access. Sources allege that goods listed on GeM are often priced higher than in the open market, leading departments to spend more than necessary. Vendors also claim that getting products listed on the platform frequently requires unofficial dealings with administrative officials.

Concerns over inflated prices and limited support

Despite the intended benefits of transparency and speed, departments are said to be paying more through GeM than they would via local suppliers. For instance, a camera available in the open market at a lower price may cost significantly more on the portal. Because the use of GeM is compulsory, departments have little choice but to proceed with these purchases, even when market alternatives are more cost-effective.

Further complications arise when products are sourced from vendors based in other states. After-sales service in such cases is often delayed or unavailable, leading to operational disruptions for the purchasing departments. These service gaps add to the growing list of complaints from users of the portal.

System replaced older tendering process

Before GeM was introduced, departments typically followed a tendering system. Purchases were made after inviting quotations from multiple vendors, with the lowest quote generally accepted. Alternatively, departments could buy directly from cooperative institutions such as khadi outlets. If the required item was not available through these channels, departments would initiate the formal tendering route—a time-consuming process.

To simplify this, the Ministry of Commerce and Industry launched GeM as a centralised procurement platform. Its features include e-bidding, reverse e-auction, and demand aggregation, all designed to increase competition and reduce procurement time. The platform was also expected to curb corruption by eliminating the need for direct contact between vendors and government buyers.

Efficiency goals yet to be realised

In theory, GeM represents a major reform in public procurement. It aims to reduce paperwork, improve cost-efficiency, and create a level playing field for vendors across India. However, in practice, the platform appears to face structural challenges. From inflated prices and poor after-sales service to allegations of gatekeeping by officials, the concerns suggest that the portal is not immune to the very issues it was created to resolve.

While departments continue to use GeM under the banner of transparency, critics argue that the portal needs stronger oversight and accountability mechanisms. Until then, questions are likely to persist about whether it is truly delivering on its promise of clean, efficient government procurement.