PRE CONTRACT INTEGRITY PACT

General:
This pre-bid pre-contract Agreement (hereinafter called the Integrity
Pact) is made on…………………. day of the month of …………………..2019. ,
between, on one hand, the Life Insurance Corporation of India (hereinafter
referred to as “LIC”) a statutory Corporation established under section 3 of
Life Insurance Corporation Act 1956 (XXXI of 1956) and having its corporate
office at “Yogakshema” Jeevan Bima Marg Mumbai 400021. (here in after
called the “BUYER” which expression shall mean and include, unless the
context otherwise requires, his successors in office assigns) of the First part.
And M/s ……………………………………………………………………………….represented by
Shri………………………………………………. .(Hereinafter called the “BIDDER
/SELLER/SERVICE PROVIDER” which expression shall mean and include,
unless the context otherwise requires, his successors and permitted assigns)
of the Second part.
WHEREAS the BUYER proposes to procure …………………………………. (Name
of the Stores/ Equipment/Item/Service) and the BIDDER/Seller/Service Provider
is willing to offer/has offered the stores/services and
WHEREAS the BIDDER/Seller/Service Provider is a private
company/public company/Government undertaking/partnership/registered
export agency, constituted in accordance with the relevant law in the matter
and the BUYER is performing its function under the LIC Act 1956.
NOW, THEREFORE,
To avoid all forms of corruption by following a system that is fair,
transparent and free from any influence/prejudiced dealings prior to, during
and subsequent to the currency of the contract to be entered into with a view
to:-
Enabling the BUYER to obtain the desired said stores/ equipment/
item/service at a competitive price in conformity with the defined
specifications by avoiding the high cost and the distortionary impact of
corruption on public procurement, and

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 Enabling BIDDERs/Sellers/Service Providers to abstain from bribing or
indulging in any corrupt practice in order to secure the contract by providing
assurance to them that their competitors will also abstain from bribing and
other corrupt practices and the BUYER will commit to prevent corruption, in
any form, by its officials by following transparent procedures.
The parties hereto hereby agree to enter into this Integrity Pact and
agree as follows:-
1.Commitments of the BUYER
1.1The BUYER undertakes that no official of the BUYER, connected directly
or indirectly with the contract, will demand, take a promise for or
accept, directly or through intermediaries, any bribe, consideration, gift,
reward, favour or any material or immaterial benefit or any other
advantage from the BIDDER, either themselves or for any person,
organisation or third party related to the contract in exchange for an
advantage in the bidding process, bid evaluation, contracting on
implementation process related to the contract.
1.2 The BUYER will, during the pre-contract stage/evaluation stage, treat
all BIDDERs alike and will provide to all BIDDERs the same information
and will not provide any such information to any particular BIDDER
which could afford an advantage to that particular BIDDER in
comparison to other BIDDERs.
1.3 All the officials of the BUYER will report to the “Chief Vigilance
Officer” of the Buyer any attempted or completed breaches of the
above commitments as well as any substantial suspicion of such a
breach.

2. In case any such preceding misconduct on the part of such official(s) is

reported by the BIDDER to the BUYER with full and verifiable facts and the
same is prima facie found to be correct by the BUYER, necessary disciplinary
proceedings, or any other action as deemed fit, including criminal
proceedings may be initiated by the BUYER and such a person shall be
debarred from further dealings related to the contract process. In such a

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case while an enquiry is being conducted by the BUYER the proceedings
under the contract would not be stalled.

Commitments of BIDDERs
3. The BIDDER commits itself to take all measures necessary to prevent
corrupt practices, unfair means and illegal activities during any stage of its
bid or during any pre-contract or post-contract stage in order to secure the
contract or in furtherance to secure it and in particular commit itself to the
following:-
3.1 The BIDDER will not offer, directly or through intermediaries, any bribe,
gift, consideration, reward, favour, any material or immaterial benefit or
other advantage, commission, fees, brokerage or inducement to any
official of the BUYER, connected directly or indirectly with the bidding
process, or to any person, organization or third party related to the
contract in exchange for any advantage in the bidding, evaluation,
contracting and implementation of the contract.
3.2 The BIDDER further undertakes that it has not given, offered or
promised to give, directly or indirectly any bribe, gift, consideration,
reward, favour, any material or immaterial benefit or other advantage,
commission, fees, brokerage or inducement to any official of the BUYER
or otherwise in procuring the Contract or forbearing to do or having
done any act in relation to the obtaining or execution of the contract of
any other contract with the government for showing or forbearing to
show favour or disfavor to any person in relation to the contract of any
other contract with the Government.
3.3 Foreign BIDDERs shall disclose the name and address of their Indian
agents and representatives in India, and Indian BIDDERs shall disclose
their foreign BUYERs or associates.
3.4 BIDDERs shall disclose the payments to be made by them to their
agents/brokers or any other intermediary, in connection with this
bid/contract.

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3.5 The BIDDER further confirms and declares to the BUYER that the
BIDDER is the original manufacturer/ integrator/authorized agent of the
stores/equipment/items and has not engaged any individual or firm or
company whether Indian or foreign to intercede, facilitate or in any way
to recommend to the BUYER or any of its functionaries, whether
officially or unofficially to the award of the contract to the BIDDER, nor
has any amount been paid, promised or intended to be paid to any such
individual, firm or company in respect of any such intercession,
facilitation or recommendation.
3.6 The BIDDER, either while presenting the bid or during pre-contract
negotiations or before signing the contract, shall disclose any payments
he has made, is committed to or intends to make to agents, brokers or
any other intermediaries, including officials of the BUYER or their family
members, if any, in connection with the contract and the details of
services agreed upon for such payments.
3.7 The Bidder will not enter with other Bidders into any undisclosed
agreement or understanding, whether formal or informal. This applies in
particular to prices, specifications, certifications, subsidiary contracts,
submission or non-submission of bids or any other actions to restrict
competitiveness or to introduce cartelisation in the bidding process.
3.8 The BIDDER will not accept any advantage in exchange for any corrupt
practice, unfair means and illegal activities.
3.9 The BIDDER/Contractor will not commit any offence under the relevant
India Penal Code (IPC) /Prevention of corruption (PC) act. Further, the
bidder will not use improperly, for purposes of competition or personal
gain, pass on to others, any information provided by the BUYER as part
of the business relationship, regarding plans, technical proposals and
business details, including information contained in any electronic data
carrier. The BIDDER also undertakes to exercise due and adequate care
lest any such information is divulged.

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3.10 The BIDDER commits to refrain from giving any complaint directly or
through any other manner without supporting it with full and verifiable
facts.
3.11 The BIDDER shall not instigate or cause to instigate any third person
to commit any of the actions mentioned above.
3.12 If the Bidder or any of the key personnel of the bidder, actively
involved in the project is a relative of any of the actively involved
personnel of the Buyer, the same should be disclosed.
The term ‘relative’ for this purpose would be as defined in section 2(77)
of the Companies Act, 2013.
3.13 The BIDDER shall not lend to or borrow any money from or enter into
any monetary dealings or transactions, directly or indirectly, with any
employee or the BUYER.
3.14 The Bidder(s) /Contractor(s) who have signed the Integrity Pact shall
not approach the Courts while representing the matter to IEMs and shall
wait for their decision in the matter.
4. Previous Transgression
4.1 The BIDDER declares that no previous transgression occurred in the
last three years immediately before signing of this Integrity Pact, with
any other company in any country in respect of any corrupt practices
envisaged hereunder or with any Public Sector Enterprise in India or any
Government Department in India that could justify; BIDDER’s exclusion
from the tender process.
4.2 The BIDDER agrees that if it makes an incorrect statement on this
subject, or committed a transgression through a violation of any of the
clauses of the commitments of bidder, BIDDER can be disqualified from
the tender process or the contract, if already awarded, can be
terminated for such reason.
5. Sanctions for Violations:
5.1 Any breach of the aforesaid provisions by the BIDDER or any one
employed by it or acting on its behalf (whether with or without the

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 knowledge of the BIDDER) shall entitle the BUYER to take all or any one
of the following actions, wherever required:-
(i) To immediately call off the pre contract negotiations without assigning any
reason or giving any; compensation to the BIDDER. However, the
proceedings with the other BIDDER(s) would continue.
(ii) The Earnest Money Deposit (in pre-contract stage) and/or Security
Deposit/ Performance Bond (after the contract is signed) shall stand
forfeited either fully or partially, as decided by the BUYER and the
BUYER shall not be required to assign any reason therefore.
(iii) To immediately cancel the contract, if already signed, without giving any
compensation to the BIDDER.
(iv) To encash the advance bank guarantee and performance bond/warranty
bond, if furnished by the BIDDER, in order to recover the payments,
already made by the BUYER, along with interest.
(v) To cancel all or any other contracts with the BIDDER. The BIDDER shall
be liable to pay compensation for any loss or damage to the BUYER
resulting from such cancellation/recession and the BUYER shall be
entitled to deduct the amount so payable from the money(s) due to the
BIDDER.
(vi) To debar the BIDDER from participating in the future bidding processes
of LIC for a minimum period of five years which any be further extended
at the discretion of the BUYER.
(vii) To recover all sums paid in violation of this Pact by BIDDER(s) to any
middleman or agent or broker with a view to securing the contract.
(viii) Forfeiture of Performance Bond in case of a decision by the BUYER to
forfeit the same without assigning any reason for imposing sanction for
violation of this pact.
5.2 The BUYER will be entitled to take all or any of the actions mentioned at
para 5.1(i) to (viii) of this pact also on the Commission by the BIDDER or
any one employed by it or acting on its behalf (whether with or without
the knowledge of the BIDDER), of an offence as defined in chapter IX of

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 the Indian Penal Code, 1860 or Prevention of Corruption Act, 1988 or any
other statute enacted for prevention of corruption.
5.3 The decision of the BUYER to the effect that a breach of the provisions of
this pact has been committed by the BIDDER shall be final and
conclusive on the BIDDER. However, the BIDDER can approach the
Independent Monitor(s) appointed for the purposes this Pact.

6. Independent Monitors:
6.1 The BUYER has appointed (hereinafter referred to as Monitors) for this
Pact in consultation with the Central Vigilance Commission.
Name, address,email of the Monitor(s):
 ………………………………………………………………………………………………………
 …………………………………………………………………………………………………………….
6.2 The task of the Monitors shall be to review independently and
objectively, whether and to what extent the parties comply with the
obligations under this Pact.
6.3 The Monitors shall not be subject to instructions by the representatives
of the parties and perform their functions neutrally and independently. It
will be obligatory for him to treat the information & documents of the
Bidder as confidential.
6.4 Both the parties accept that the Monitors have the right to access all the
documents relating to the project/procurement, including minutes of
meetings.
6.5 As soon as the Monitor notices, or has reason to believe, a violation of
this pact, he will so inform the Executive Director (E&OS), LIC.
6.6 The BIDDER(s) accepts that the Monitor has the right to access without
restriction to all Project documentation of the BUYER including that
provided by the BIDDER. The BIDDER will also grant the Monitor, upon
his request and demonstration of a valid interest, unrestricted and
unconditional access to his project documentation. The same is
applicable to Subcontractors. The Monitor shall be under contractual

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 obligation to treat the information and documents of the
BIDDER/Subcontractor(s) with confidentiality.
The Monitor has also signed declarations on ‘Non-Disclosure of
Confidential Information’ and of ‘Absence of Conflict of Interest’. In
case of any conflict of interest arising at a later date, the IEM shall
inform Chairman, LICI and recues himself / herself from that case.
6.7 The BUYER will provide to the Monitor sufficient information about all
meetings among the parties related to the Project provided such
meetings could have an impact on the contractual relations between the
parties. The parties will offer to the Monitor the option to participate in
such meetings.
6.8 The Monitor will submit a written report to the Chairman, LIC within 8
to 10 weeks from the date of reference or intimation to him by the
BUYER /BIDDER and, should the occasion arise, submit proposals for
correcting problematic situations.
6.9 If the Monitor has reported to the Chairman, LIC, a substantiated
suspicion of an offence under relevant IPC/ PC Act, and the Chairman
LICI has not, within the reasonable time taken visible action to proceed
against such offence or reported it to the Chief Vigilance Officer, the
Monitor may also transmit this information directly to the Central
Vigilance Commissioner.
7. Facilitation of Investigation:
In case of any allegation of violation of any provisions of this pact or
payment of commission, the BUYER or its agencies shall be entitled to
examine all the documents including the Books of Accounts of the BIDDER.
The BIDDER shall provide necessary information and documents in English
and shall extend all possible help of the purpose of such
examination/inspection.

8. Law and Place of Jurisdiction:

This Pact is subject to Indian Law. The place of performance and jurisdiction
is the seat of the BUYER.

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9. Other Legal Actions:
The actions stipulated in this Integrity Pact are without prejudice to any
other legal action that may follow in accordance with the provisions of the
extent law in force relating to any civil or criminal proceedings.
If the Contractor is a partnership or a consortium, this agreement must be
signed by all partners or consortium members.
Changes and supplements as well as termination notices need to be made in
writing.
10. Validity:
10.1 The validity of this Integrity Pact shall be from date of its signing and
extend upto 12 months after the last payment under the contract. In case
BIDDER is unsuccessful, this Integrity Pact shall expire after six months from
the date of the signing of the contract.
10.2 Should one or several provisions of this Pact turn out to be invalid; the
remainder of this pact shall remain valid. In this case, the parties will strive
to come to an agreement to their original intentions.
11. The parties hereby sign this Integrity Pact at………………….on………….

BUYER BIDDER
Name of the Officer: CEO:
Designation
Deptt./

Witness
1……………………………………… 1………………………………….

2…………………………………….. 2…………………………………..

(Note: Bidder/Seller/Service Provider

Stores/equipment/item/service
Bidding process/ bid evaluation/process of availing services

Appropriate word may be used where ever applicable without altering the purpose /desired intention of
the clause. )

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