Common use of Banning of Business Dealings Clause in Contracts

Banning of Business Dealings. 7.1 Normally, a decision to ban business dealings with any Agency should apply throughout the Company including Subsidiaries. However, the Competent Authority of the Plant / Unit except Corporate Office can impose such ban unit-wise only if in the particular case banning of business dealings by respective Plant / Unit will serve the purpose and achieve its objective and banning throughout the Company is not required in view of the local conditions and impact of the misconduct / default to beyond the Plant / Unit. Any ban imposed by Corporate Office shall be applicable across all Plants / Units of the Company including Subsidiaries. 7.2 There will be a Standing Committee in each Plant / Unit to be appointed by Chief Executive for processing the cases of “Banning of Business Dealings” except for banning of business dealings with foreign suppliers of coal/coke. However, for procurement of items / award of contracts, to meet the requirement of Corporate Office only, the committee shall be consisting of General Manager / Dy. General Manager each from Operations, Finance, Law & CMMG. Member from CMMG shall be the convener of the committee. The functions of the committee shall, inter-alia include: i) To study the report of the Investigating Agency and decide if a prima-facie case for Company-wide / Local unit wise banning exists, if not, send back the case to the Competent Authority. ii) To recommend for issue of show-cause notice to the Agency by the concerned department. iii) To examine the reply to show-cause notice and call the Agency for personal hearing, if required. iv) To submit final recommendation to the Competent Authority for banning or otherwise. 7.3 If companywide banning is contemplated by the banning Committee of any plant/ unit, the proposal should be sent by the committee to ED (CMMG) through the Chief Executive of the Plant/ Unit setting out the facts of the case and the justification of the action proposed along with all the relevant papers and documents. CMMG shall get feedback about that agency from all other Plants / Units and based on this feedback, a prima- facie decision for banning / or otherwise shall be taken by the Competent Authority. At this stage if it is felt by the Competent Authority that there is no sufficient ground for companywide banning, then the case shall be sent back to the Chief Executive of the Plant/ Unit for further action at the Plant/ Unit level. If the prima-facie decision for Company-wide banning has been taken, ED (CMMG) shall issue a show-cause notice to the agency conveying why it should not be banned throughout SAIL. After considering the reply of the Agency and other circumstances and facts of the xxxx, XX (CMMG) will submit the case to the Competent Authority to take a final decision for Company-wide banning or otherwise. 7.4 If the Competent Authority is prima-facie of view that action for banning business dealings with the Agency is called for, a show-cause notice may be issued to the Agency as per paragraph 9.1 and an enquiry held accordingly. 7.5 Procedure for Banning of Business Dealings with Foreign Suppliers of imported coal/coke. i) Banning of the agencies shall apply through out the Company including Subsidiaries. ii) Based on the complaint forwarded by ED (CIG) or received directly by Corporate Vigilance, an investigation shall be carried out by Corporate Vigilance. After investigation depending upon the gravity of the misconduct, Corporate Vigilance may send their report to Executive Director, Coal Import Group to be placed before a Committee consisting of the following :- 1. ED (F&A)/Head of Corporate Finance, 2. ED, CIG/Head of CIG – Convenor of the Committee 3. ED, CMMG/Head of CMMG, Corporate Office 4. ED (Law)/Head of Corporate Law The Committee shall examine the report and give its comments / recommendations within 21 days of receipt of the reference by ED, CIG. iii) The comments / recommendations of the Committee shall be placed by ED, CIG before SAIL Directors’ Committee (SDC) constituted for import of Coal. If SDC opines that it is a fit case for initiating banning action, it will direct ED (CIG) to issue show- cause notice to the agency for replying within a reasonable period. iv) On receipt of the reply or on expiry of the stipulated period, the case shall be submitted by ED (CIG) to SDC for consideration & decision. v) The decision of the SDC shall be communicated to the agency by ED (CIG). 8.1 If the Competent Authority decides that the charge against the Agency is of a minor nature, it may issue a show-cause notice as to why the name of the Agency should not be removed from the list of approved Agencies - Suppliers / Contractors, etc. 8.2 The effect of such an order would be that the Agency would not be disqualified from competing in Open Tender Enquiries but LTE may not be given to the Agency concerned. 8.3 Past performance of the Agency may be taken into account while processing for approval of the Competent Authority for awarding the contract.

Banning of Business Dealings. 7.1 I. Normally, a decision to ban business dealings with any Agency should apply throughout the Company including Subsidiaries. However, the Competent Authority of the Plant / Unit Department/Region except Corporate Office can impose such ban unit-wise only if in the particular case banning of business dealings by respective Plant / Unit Department/Region will serve the purpose and achieve its objective and banning throughout the Company is not required in view of the local conditions and impact of the misconduct / misconduct/default to beyond the Plant / UnitDepartment/Region. Any ban imposed by Corporate Office shall be applicable across all Plants / Units Departments/Regions of the Company including SubsidiariesCompany. 7.2 II. For Company-wide banning, the proposal should be sent by The CVO through the Chief Executive of the Department/Region setting out the facts of the case and the justification of the action proposed along with all the relevant papers and documents. The Corporate Vigilance shall process the proposal of the Department/Region for a prima- facie view in the matter by the Competent Authority nominated for Company-wide banning. The CVO shall get feedback about that agency from all other Departments/Stations. Based on this feedback, a prima-facie decision for banning/or otherwise shall be taken by the Competent Authority. If the prima-facie decision for Company-wide banning has been taken, the Corporate Vigilance shall issue a show-cause notice to the agency conveying why it should not be banned throughout Pawan Hans. After considering the reply of the Agency and other circumstances and facts of the case, a final decision for Company-wide banning shall be taken by the Competent Authority. III. There will be a Standing Committee in each Plant / Unit Department/Region to be appointed by Chief Executive for processing the cases of “Banning of Business Dealings” except for banning of business dealings with foreign suppliers of coal/coke. However, for procurement of items / items/award of contracts, to meet the requirement of Corporate Office only, the committee shall be consisting of Executive Director/General Manager / Dy. General Manager each from Operations, Finance, Law & CMMG. Member from CMMG shall be the convener of the committee. The functions of the committee shall, inter-alia includeProcurement and Legal: ia) To study the report of the Investigating Agency and decide if a prima-facie case for Company-wide / wide/Local unit Region wise banning exists, if not, send back the case to the Competent Authority. iib) To recommend for issue of show-cause notice to the Agency by the concerned department. iiic) To examine the reply to show-cause notice and call the Agency for personal hearing, if required. ivd) To submit final recommendation to the Competent Authority for banning or otherwise. 7.3 If companywide banning is contemplated by the banning Committee of any plant/ unit, the proposal should be sent by the committee to ED (CMMG) through the Chief Executive of the Plant/ Unit setting out the facts of the case and the justification of the action proposed along with all the relevant papers and documentsIV. CMMG shall get feedback about that agency from all other Plants / Units and based on this feedback, a prima- facie decision for banning / or otherwise shall be taken by the Competent Authority. At this stage if it is felt by the Competent Authority that there is no sufficient ground for companywide banning, then the case shall be sent back to the Chief Executive of the Plant/ Unit for further action at the Plant/ Unit level. If the prima-facie decision for Company-wide banning has been taken, ED (CMMG) shall issue a show-cause notice to the agency conveying why it should not be banned throughout SAIL. After considering the reply of the Agency and other circumstances and facts of the xxxx, XX (CMMG) will submit the case to the Competent Authority to take a final decision for Company-wide banning or otherwise. 7.4 If the Competent Authority is prima-facie of the view that action for banning business dealings with the Agency is called for, a show-cause notice may be issued to the Agency as per paragraph 9.1 and an enquiry held accordingly. 7.5 Procedure for Banning of Business Dealings with Foreign Suppliers of imported coal/coke. i) Banning of the agencies shall apply through out the Company including Subsidiaries. ii) Based on the complaint forwarded by ED (CIG) or received directly by Corporate Vigilance, an investigation shall be carried out by Corporate Vigilance. After investigation depending upon the gravity of the misconduct, Corporate Vigilance may send their report to Executive Director, Coal Import Group to be placed before a Committee consisting of the following :- 1. ED (F&A)/Head of Corporate Finance, 2. ED, CIG/Head of CIG – Convenor of the Committee 3. ED, CMMG/Head of CMMG, Corporate Office 4. ED (Law)/Head of Corporate Law The Committee shall examine the report and give its comments / recommendations within 21 days of receipt of the reference by ED, CIG. iii) The comments / recommendations of the Committee shall be placed by ED, CIG before SAIL Directors’ Committee (SDC) constituted for import of Coal. If SDC opines that it is a fit case for initiating banning action, it will direct ED (CIG) to issue show- cause notice to the agency for replying within a reasonable period. iv) On receipt of the reply or on expiry of the stipulated period, the case shall be submitted by ED (CIG) to SDC for consideration & decision. v) The decision of the SDC shall be communicated to the agency by ED (CIG). 8.1 I. If the Competent Authority decides that the charge against the Agency is of a minor nature, it may issue a show-cause notice as to why the name of the Agency should not be removed from the list of approved Agencies - Suppliers / Suppliers/Contractors, etc. 8.2 II. The effect of such an order would be that the Agency would not be disqualified from competing in Open Tender Enquiries but LTE may not be given to the Agency concernedEnquiries. 8.3 III. Past performance of the Agency may be taken into account while processing for approval of the Competent Authority for awarding the contract. I. In case where the Competent Authority decides that action against an Agency is called for, a show-cause notice has to be issued to the Agency. Statement containing the imputation of misconduct or misbehaviour may be appended to the show-cause notice and the Agency should be asked to submit within 15 days a written statement in its defence. II. If the Agency requests for inspection of any relevant document in possession of Pawan Hans, necessary facility for inspection of documents may be provided. III. The Competent Authority may consider and pass an appropriate speaking order: a) For exonerating the Agency if the charges are not established; b) For removing the Agency from the list of approved Suppliers/Contactors, etc. c) For banning the business dealing with the Agency. IV. If it decides to ban business dealings, the period for which the ban would be operative may be mentioned. The order may also mention that the ban would extend to the interconnected Agencies of the Agency. I. The Agency may file an appeal against the order of the Competent Authority banning business dealing, etc. The appeal shall be to the Appellate Authority. Such an appeal shall be preferred within one month from the date of receipt of the order banning business dealing, etc. II. Appellate Authority would consider the appeal and pass appropriate order which shall be communicated to the Agency as well as the Competent Authority. Any petition/application filed by the Agency concerning the review of the banning order passed originally by Chief Executive/Competent Authority under the existing guidelines either before or after filing of appeal before the Appellate Authority or after disposal of appeal by the Appellate Authority, the review petition can be decided by the Chief Executive/Competent Authority upon disclosure of new facts/circumstances or subsequent development necessitating such review. The Competent Authority may refer the same petition to the Standing Committee for examination and recommendation. I. Depending upon the gravity of misconduct established, the Competent Authority of the Corporate Office may circulate the names of Agency with whom business dealings have been banned, to the Government Departments, other Public Sector Enterprises, etc. for such action as they deem appropriate. II. If Government Departments or a Public Sector Enterprise request for more information about the Agency with whom business dealings have been banned, a copy of the report of Inquiring Authority together with a copy of the order of the Competent Authority/Appellate Authority may be supplied. III. If business dealings with any Agency have been banned by the Central or State Government or any other Public Sector Enterprise, Pawan Hans may, without any further enquiry or investigation, issue an order banning business dealing with the Agency and its inter- connected Agencies. IV. Based on the above, Departments/Stations may formulate their own procedure for implementation of the Guidelines.

Banning of Business Dealings. 7.1 Normally, a A decision to ban business dealings with any Agency should by any one of the Departments of DPA will apply throughout the Company Board including Subsidiaries. HoweverDivisions, the Competent Authority of the Plant / Unit except Corporate Office can impose such ban uniti.e., Board-wise only if in the particular case banning of business dealings by respective Plant / Unit will serve the purpose and achieve its objective and banning throughout the Company is not required in view of the local conditions and impact of the misconduct / default to beyond the Plant / Unit. Any ban imposed by Corporate Office shall be applicable across all Plants / Units of the Company including Subsidiarieswide banning. 7.2 There will be a Standing Banning Committee (SBC) in each Plant / Unit Department to be appointed by Chief Executive Competent Authority for processing the cases of “Banning of Business Dealings” except for banning of business dealings with foreign suppliers of coal/coke”. However, for procurement of items / award of contracts, to meet the requirement of Corporate Office Board only, the committee Committee shall be consisting of General Manager / Dy. General Manager HoD each from Operations, Finance, Finance & Law & CMMGDepartments. Member from CMMG The proposal of the Concerned Department for initiating action under the Guidelines for Banning of Business Dealings based on their own findings and / or upon receipt of advice of the Investigating Department shall be forwarded through respective Head of Department to the convener of the committee. Standing Banning Committee for consideration. 7.3 The functions of the committee Standing Banning Committee shall, inter-alia include: i) To study examine in detail the report of allegations / irregularities / misconduct mentioned in the Investigating Agency proposal for banning forwarded by the Department, hold preliminary meeting and decide if a prima-facie case for Company-wide / Local unit wise banning under the guidelines exists. If during preliminary meeting, if notSBC is of opinion that prima facie no case is made out, send back it shall return the case to the Competent AuthorityConcerned Department. ii) To If it is decided to proceed for banning action, to recommend for issue of show-cause notice (as per para 9) to the Agency by the concerned departmentConcerned Department, as to why action should not be taken against the Agency, including its interconnected agencies, under the Guidelines for Banning of Business Dealings with them. Agency should be asked to submit its reply within 15 days of the show- cause notice. iii) To examine the reply given by the Agency to show-cause notice and call the Agency for personal hearing, if required. iv) To submit final recommendation to the Competent Authority Concerned Department for banning of business dealings with the Agency or otherwiseBoard wide Hold on participation of the Agency in tenders or exoneration. 7.3 7.4 If companywide banning is contemplated recommended by the banning Standing Banning Committee of any plant/ unitDepartment / Division, the proposal containing the facts of the case, proper justification of the action proposed, relevant supporting documents along with the recommendation of the SBC and proposed banning period should be sent by the committee to ED (CMMG) through Concerned Department and duly forwarded by the Chief Executive Head of the Plant/ Unit setting out Department / Division, to the facts of the case and the justification of the action proposed along with all the relevant papers and documentsCompetent Authority. CMMG shall get feedback about that agency from all other Plants / Units and based Based on this feedbackproposal, a prima- facie decision for banning / or otherwise shall be taken by the Competent Authority. At this stage if it is felt by the Competent Authority that there is no sufficient ground for companywide banning, then the case with detailed reasons shall be sent back to the Chief Executive of the Plant/ Unit respective Department / Division for further necessary action at the Plant/ Unit leveltheir end. If the prima-facie decision for Company-wide banning has been taken, ED (CMMGThe Competent Authority may consider and pass an appropriate Speaking Order: a) shall issue a show-cause notice to the agency conveying why it should not be banned throughout SAIL. After considering the reply of For exonerating the Agency and other circumstances and facts of if the xxxx, XX (CMMGcharges / allegations are not established; b) will submit For banning the case to the Competent Authority to take a final decision for Company-wide banning or otherwise. 7.4 If the Competent Authority is prima-facie of view that action for banning business dealings with the Agency is called for, a show-cause notice may be issued to or c) For putting on Hold the participation of the Agency as per paragraph 9.1 and an enquiry held accordinglyin tenders in the concerned Department / Division. 7.5 Procedure for Banning of Business Dealings with Foreign Suppliers of imported coal/coke. i) Banning of If the agencies shall apply through out the Company including Subsidiaries. ii) Based on the complaint forwarded by ED (CIG) or received directly by Corporate Vigilance, an investigation shall be carried out by Corporate Vigilance. After investigation depending upon the gravity of the misconduct, Corporate Vigilance may send their report to Executive Director, Coal Import Group to be placed before a Committee consisting of the following :- 1. ED (F&A)/Head of Corporate Finance, 2. ED, CIG/Head of CIG – Convenor of the Committee 3. ED, CMMG/Head of CMMG, Corporate Office 4. ED (Law)/Head of Corporate Law The Committee shall examine the report and give its comments / recommendations within 21 days of receipt of the reference by ED, CIG. iii) The comments / recommendations of the Committee shall be placed by ED, CIG before SAIL Directors’ Committee (SDC) constituted for import of Coal. If SDC opines Competent Authority decides that it is a fit case for initiating banning actionof business dealings with the Agency, it will direct ED (CIG) to issue show- cause notice the Competent Authority shall pass necessary orders which shall be routed back to the agency Department concerned for replying within issuance of banning orders to the Agency. However, in cases where there is a reasonable periodshortage of suppliers and banning may hurt the overall interest of DPA, endeavour should be to pragmatically analyze the circumstances, try to reform the Supplier and to get a written commitment from them that their performance will improve. iv) On receipt of the reply or on expiry of the stipulated period, the case shall be submitted by ED (CIG) to SDC for consideration & decision. v) The decision of the SDC shall be communicated to the agency by ED (CIG). 8.1 7.6 If the Competent Authority decides to ban business dealings, the period for which the ban would be operative shall be mentioned. If applicable, the order may also mention that the charge against ban would extend to the interconnected agencies of the Agency. The Speaking Order for banning would be conveyed by the Concerned Department to the Agency concerned and copy circulated to all Departments of DPA. 7.7 The Banning period may range from 1 year to 3 years depending on the gravity of the case as decided by the Competent Authority. Ordinarily, the period of banning shall be in the range of 1-2 years from the date of issuance of order depending on the severity of the irregularities / lapses committed / termination of contract due to poor performance, etc. However, in case of fraud / forgery / corrupt / fraudulent practice or tampering of documents by the Agency as given in para 6.7 above, the period of banning to be imposed on the Agency would be three years. The period of suspension, if any, shall be accounted for up to a maximum of 6 months in the period of banning provided the banning order is issued within the period of a minor naturesuspension. 7.8 As far as possible, it may issue a show-cause notice as the Agency under xxxxxxx should be allowed to why complete the name job of existing contracts, unless the Competent Authority, having regard to the circumstances of the case, decides otherwise. Once the order for banning is issued, existing offers against ongoing tenders (prior to issuance of contract) / new offers of the Agency should shall not be removed from entertained during the list period of approved Agencies - Suppliers / Contractorsbanning. In addition, etc. 8.2 The effect of such an order would be that if the Agency has been banned under provisions of Para 6.7, then the particular contract in which the irregularity has been proved will be terminated with immediate effect. In exceptional cases, where it would not be disqualified from competing in Open Tender Enquiries but LTE prudent to terminate the said contract with immediate effect, the contract may not be given allowed to continue for such minimum period during which alternate arrangement(s) can be made. The same shall however require the approval of the Chairman / HoD where the exigency to continue the contract has been clearly brought out. 7.9 In case the Competent Authority has decided to exonerate the Agency, the Concerned Department will issue the exoneration letter to the Agency concerned. 8.3 Past performance of concerned as well as communicate to all Departmental Heads within the Department / Division. If the Agency may has been suspended in the case under consideration, in the same letter to the Agency it must be taken into account while processing for approval of clarified that the Competent Authority for awarding the contractSuspension has also been revoked.

Banning of Business Dealings. 7.1 Normally, a decision to ban business dealings with any Agency should apply throughout the Company including Subsidiaries. However, the Competent Authority of the Plant / Department/Unit except Corporate Office can impose such ban unit-wise only if in the particular case banning of business dealings by respective Plant / Department/Unit will serve the purpose and achieve its objective and banning throughout the Company is not required in view of the local conditions and impact of the misconduct / misconduct/default to beyond the Plant / Department/Unit. Any ban imposed by Corporate Office shall be applicable across all Plants / Units Departments/Stations of the Company including Subsidiaries. 7.2 For Company-wide banning, the proposal should be sent by ACVO of the Department/Unit to the CVO through the Chief Executive of the Department/Unit setting out the facts of the case and the justification of the action proposed along with all the relevant papers and documents except for banning of business dealings with Foreign Suppliers of imported coal/coke. The Corporate Vigilance shall process the proposal of the Department/Unit for a prima-facie view in the matter by the Competent Authority nominated for Company-wide banning. The CVO shall get feedback about that agency from all other Departments/Stations. Based on this feedback, a prima-facie decision for banning/or otherwise shall be taken by the Competent Authority. If the prima-facie decision for Company-wide banning has been taken, the Corporate Vigilance shall issue a show-cause notice to the agency conveying why it should not be banned throughout AIR INDIA. After considering the reply of the Agency and other circumstances and facts of the case, a final decision for Company-wide banning shall be taken by the Competent Authority. 7.3 There will be a Standing Committee in each Plant / Department/Unit to be appointed by Chief Executive for processing the cases of “Banning of Business Dealings” except for banning of business dealings with foreign suppliers of coal/coke. However, for procurement of items / items/award of contracts, to meet the requirement of Corporate Office only, the committee shall be consisting of Executive Director/General Manager / Dy. General Manager each from Operations, Finance, Law & CMMG. Member from CMMG shall be the convener of the committee. The functions of the committee shall, inter-alia includeProcurement and Legal: i) To study the report of the Investigating Agency and decide if a prima-facie case for Company-wide / wide/Local unit wise banning exists, if not, send back the case to the Competent Authority. ii) To recommend for issue of show-cause notice to the Agency by the concerned department. iii) To examine the reply to show-cause notice and call the Agency for personal hearing, if required. iv) To submit final recommendation to the Competent Authority for banning or otherwise. 7.3 If companywide banning is contemplated by the banning Committee of any plant/ unit, the proposal should be sent by the committee to ED (CMMG) through the Chief Executive of the Plant/ Unit setting out the facts of the case and the justification of the action proposed along with all the relevant papers and documents. CMMG shall get feedback about that agency from all other Plants / Units and based on this feedback, a prima- facie decision for banning / or otherwise shall be taken by the Competent Authority. At this stage if it is felt by the Competent Authority that there is no sufficient ground for companywide banning, then the case shall be sent back to the Chief Executive of the Plant/ Unit for further action at the Plant/ Unit level. If the prima-facie decision for Company-wide banning has been taken, ED (CMMG) shall issue a show-cause notice to the agency conveying why it should not be banned throughout SAIL. After considering the reply of the Agency and other circumstances and facts of the xxxx, XX (CMMG) will submit the case to the Competent Authority to take a final decision for Company-wide banning or otherwise. 7.4 If the Competent Authority is prima-facie of the view that action for banning business dealings with the Agency is called for, a show-cause notice may be issued to the Agency as per paragraph 9.1 and an enquiry held accordingly. 7.5 Procedure for Banning of Business Dealings with Foreign Suppliers of imported coal/coke. i) Banning of the agencies shall apply through out the Company including Subsidiaries. ii) Based on the complaint forwarded by ED (CIG) or received directly by Corporate Vigilance, an investigation shall be carried out by Corporate Vigilance. After investigation depending upon the gravity of the misconduct, Corporate Vigilance may send their report to Executive Director, Coal Import Group to be placed before a Committee consisting of the following :- 1. ED (F&A)/Head of Corporate Finance, 2. ED, CIG/Head of CIG – Convenor of the Committee 3. ED, CMMG/Head of CMMG, Corporate Office 4. ED (Law)/Head of Corporate Law The Committee shall examine the report and give its comments / recommendations within 21 days of receipt of the reference by ED, CIG. iii) The comments / recommendations of the Committee shall be placed by ED, CIG before SAIL Directors’ Committee (SDC) constituted for import of Coal. If SDC opines that it is a fit case for initiating banning action, it will direct ED (CIG) to issue show- cause notice to the agency for replying within a reasonable period. iv) On receipt of the reply or on expiry of the stipulated period, the case shall be submitted by ED (CIG) to SDC for consideration & decision. v) The decision of the SDC shall be communicated to the agency by ED (CIG). 8.1 If the Competent Authority decides that the charge against the Agency is of a minor nature, it may issue a show-cause notice as to why the name of the Agency should not be removed from the list of approved Agencies - Suppliers / Contractors, etc. 8.2 The effect of such an order would be that the Agency would not be disqualified from competing in Open Tender Enquiries but LTE may not be given to the Agency concerned. 8.3 Past performance of the Agency may be taken into account while processing for approval of the Competent Authority for awarding the contract.

Banning of Business Dealings. 7.1 Normally, a decision to ban business dealings with any Agency should apply throughout the Company including Subsidiaries. However, the Competent Authority of the Plant / Department/Unit except Corporate Office can impose such ban unit-wise only if in the particular case banning of business dealings by respective Plant / Department/Unit will serve the purpose and achieve its objective and banning throughout the Company is not required in view of the local conditions and impact of the misconduct / misconduct/default to beyond the Plant / Department/Unit. Any ban imposed by Corporate Office shall be applicable across all Plants / Units Departments/Stations of the Company including Subsidiaries. 7.2 For Company-wide banning, the proposal should be sent by ACVO of the Department/Unit to the CVO through the Chief Executive of the Department/Unit setting out the facts of the case and the justification of the action proposed along with all the relevant papers and documents except for banning of business dealings with Foreign Suppliers of imported coal/coke. The Corporate Vigilance shall process the proposal of the Department/Unit for a prima-facie view in the matter by the Competent Authority nominated for Company-wide banning. The CVO shall get feedback about that agency from all other Departments/Stations. Based on this feedback, a prima-facie decision for banning/or otherwise shall be taken by the Competent Authority. If the prima-facie decision for Company-wide banning has been taken, the Corporate Vigilance shall issue a show-cause notice to the agency conveying why it should not be banned throughout NACIL. After considering the reply of the Agency and other circumstances and facts of the case, a final decision for Company-wide banning shall be taken by the Competent Authority. 7.3 There will be a Standing Committee in each Plant / Department/Unit to be appointed by Chief Executive for processing the cases of “Banning of Business Dealings” except for banning of business dealings with foreign suppliers of coal/coke. However, for procurement of items / items/award of contracts, to meet the requirement of Corporate Office only, the committee shall be consisting of Executive Director/General Manager / Dy. General Manager each from Operations, Finance, Law & CMMG. Member from CMMG shall be the convener of the committee. The functions of the committee shall, inter-alia includeProcurement and Legal: i) To study the report of the Investigating Agency and decide if a prima-facie case for Company-wide / wide/Local unit wise banning exists, if not, send back the case to the Competent Authority. ii) To recommend for issue of show-cause notice to the Agency by the concerned department. iii) To examine the reply to show-cause notice and call the Agency for personal hearing, if required. iv) To submit final recommendation to the Competent Authority for banning or otherwise. 7.3 If companywide banning is contemplated by the banning Committee of any plant/ unit, the proposal should be sent by the committee to ED (CMMG) through the Chief Executive of the Plant/ Unit setting out the facts of the case and the justification of the action proposed along with all the relevant papers and documents. CMMG shall get feedback about that agency from all other Plants / Units and based on this feedback, a prima- facie decision for banning / or otherwise shall be taken by the Competent Authority. At this stage if it is felt by the Competent Authority that there is no sufficient ground for companywide banning, then the case shall be sent back to the Chief Executive of the Plant/ Unit for further action at the Plant/ Unit level. If the prima-facie decision for Company-wide banning has been taken, ED (CMMG) shall issue a show-cause notice to the agency conveying why it should not be banned throughout SAIL. After considering the reply of the Agency and other circumstances and facts of the xxxx, XX (CMMG) will submit the case to the Competent Authority to take a final decision for Company-wide banning or otherwise. 7.4 If the Competent Authority is prima-facie of the view that action for banning business dealings with the Agency is called for, a show-cause notice may be issued to the Agency as per paragraph 9.1 and an enquiry held accordingly. 7.5 Procedure for Banning of Business Dealings with Foreign Suppliers of imported coal/coke. i) Banning of the agencies shall apply through out the Company including Subsidiaries. ii) Based on the complaint forwarded by ED (CIG) or received directly by Corporate Vigilance, an investigation shall be carried out by Corporate Vigilance. After investigation depending upon the gravity of the misconduct, Corporate Vigilance may send their report to Executive Director, Coal Import Group to be placed before a Committee consisting of the following :- 1. ED (F&A)/Head of Corporate Finance, 2. ED, CIG/Head of CIG – Convenor of the Committee 3. ED, CMMG/Head of CMMG, Corporate Office 4. ED (Law)/Head of Corporate Law The Committee shall examine the report and give its comments / recommendations within 21 days of receipt of the reference by ED, CIG. iii) The comments / recommendations of the Committee shall be placed by ED, CIG before SAIL Directors’ Committee (SDC) constituted for import of Coal. If SDC opines that it is a fit case for initiating banning action, it will direct ED (CIG) to issue show- cause notice to the agency for replying within a reasonable period. iv) On receipt of the reply or on expiry of the stipulated period, the case shall be submitted by ED (CIG) to SDC for consideration & decision. v) The decision of the SDC shall be communicated to the agency by ED (CIG). 8.1 If the Competent Authority decides that the charge against the Agency is of a minor nature, it may issue a show-cause notice as to why the name of the Agency should not be removed from the list of approved Agencies - Suppliers / Contractors, etc. 8.2 The effect of such an order would be that the Agency would not be disqualified from competing in Open Tender Enquiries but LTE may not be given to the Agency concerned. 8.3 Past performance of the Agency may be taken into account while processing for approval of the Competent Authority for awarding the contract.

Banning of Business Dealings. 7.1 Normally, a decision to ban business dealings with any Agency should apply throughout the Company including SubsidiariesMbPA. However, the Competent Authority of the Plant / Unit except Corporate Office can impose such ban unit-wise only if in the particular case banning of business dealings by respective Plant / Unit will serve the purpose and achieve its objective and banning throughout the Company MbPA is not required in view of the local conditions and impact of the misconduct / default to beyond the Plant / Unitmisconduct/ default. Any ban imposed by Corporate Office shall be applicable across all Plants / Units of the Company including SubsidiariesMbPA. 7.2 For banning, the proposal should be sent by Head of Executing Department to the CVO setting out the facts of the case and the justification of the action proposed alongwith all the relevant papers and documents except for banning of business dealings with Foreign suppliers of imported material. The Vigilance Department shall process the proposal for a prima-facie view in the matter by the Competent Authority nominated for MbPA-wide banning. The CVO shall get feedback about that agency from the HOD, based on this feedback, a prima-facie, decision for banning/ or otherwise shall be taken by the Competent Authority. If the prima-facie decision for banning has been taken, the Vigilance Department shall issue a show-cause notice to the agency conveying why it should not be banned throughout MbPA. After considering the reply of the Agency and other circumstances and facts of the case, a final decision for banning shall be taken by the Competent Authority. 7.3 There will be a Standing Committee in each Plant / Unit to be appointed by Chief Executive HOD for processing the cases of “Banning of Business Dealings” Dealings except for banning of business dealings with foreign suppliers of coal/cokesuppliers. However, for procurement of items / items/ award of contracts, to meet the requirement of Corporate Office onlyDepartment, the committee shall be consisting of General Manager / Dy. General Manager each HOD from OperationsExecuting, Finance, Law & CMMGUser Department. Member from CMMG Executing Department shall be the convener of the committeeCommittee. The functions of the committee Committee shall, inter-alia include:. i) To study the report of the Investigating investigating Agency and decide if it a prima-prima- facie case for CompanyMbPA-wide / Local unit unit, wise banning exists, if not, send back the case to the Competent Authority. ii) To recommend for issue of show-show cause notice to the Agency by the concerned department. iii) To examine the reply to show-show cause notice and call the Agency for personal hearing, hearing if required. iv) To submit final recommendation to the Competent Authority for banning or otherwise. 7.3 If companywide banning is contemplated by the banning Committee of any plant/ unit, the proposal should be sent by the committee to ED (CMMG) through the Chief Executive of the Plant/ Unit setting out the facts of the case and the justification of the action proposed along with all the relevant papers and documents. CMMG shall get feedback about that agency from all other Plants / Units and based on this feedback, a prima- facie decision for banning / or otherwise shall be taken by the Competent Authority. At this stage if it is felt by the Competent Authority that there is no sufficient ground for companywide banning, then the case shall be sent back to the Chief Executive of the Plant/ Unit for further action at the Plant/ Unit level. If the prima-facie decision for Company-wide banning has been taken, ED (CMMG) shall issue a show-cause notice to the agency conveying why it should not be banned throughout SAIL. After considering the reply of the Agency and other circumstances and facts of the xxxx, XX (CMMG) will submit the case to the Competent Authority to take a final decision for Company-wide banning or otherwise. 7.4 If the Competent Authority is primaprime-facie of view that action for banning business dealings with the Agency is called for, a show-show cause notice may be issued to the Agency as per paragraph 9.1 and an enquiry held accordingly. 7.5 Procedure for Banning of Business Dealings with Foreign Suppliers supplier of imported coal/cokematerial. i) Banning of the agencies shall apply through out throughout the Company MbPA including Subsidiariessubsidiaries. ii) Based on the complaint forwarded by ED (CIG) XXX or received directly by Corporate VigilanceXxxxxxxxx Department, an investigation shall be carried out by Corporate VigilanceXxxxxxxxx Department. After investigation depending upon the gravity of the misconduct, Corporate misconduct Vigilance Department may send their report to Executive Director, Coal Import Group HOD to be placed before a Committee MHC consisting of the following :following: - 1. ED (F&A)/Head of Corporate Finance, 2. ED, CIG/i) Head of CIG – Convenor of the CommitteeFinance Department. 3. ED, CMMG/(ii) Head of CMMG, Corporate Office 4. ED (Law)/Head of Corporate Law The Committee shall examine the report and give its comments / recommendations within 21 days of receipt of the reference by ED, CIGExecuting Department. (iii) The comments / recommendations Head of the Committee shall be placed by ED, CIG before SAIL Directors’ Committee (SDC) constituted for import of Coal. If SDC opines that it is a fit case for initiating banning action, it will direct ED (CIG) to issue show- cause notice to the agency for replying within a reasonable periodUser Department. iv) On receipt of the reply or on expiry of the stipulated period, the case shall be submitted by ED (CIG) to SDC for consideration & decision. v) The decision of the SDC shall be communicated to the agency by ED (CIG). 8.1 If the Competent Authority decides that the charge against the Agency is of a minor nature, it may issue a show-cause notice as to why the name of the Agency should not be removed from the list of approved Agencies - Suppliers / Contractors, etc. 8.2 The effect of such an order would be that the Agency would not be disqualified from competing in Open Tender Enquiries but LTE may not be given to the Agency concerned. 8.3 Past performance of the Agency may be taken into account while processing for approval of the Competent Authority for awarding the contract.

Banning of Business Dealings. 7.1 Normally, a decision to ban business dealings with any Agency should apply throughout the Company including Subsidiaries. However, the Competent Authority of the Plant / Department/Unit except Corporate Office can impose such ban unit-wise only if in the particular case banning of business dealings by respective Plant / Department/Unit will serve the purpose and achieve its objective and banning throughout the Company is not required in view of the local conditions and impact of the misconduct / misconduct/default to beyond the Plant / Department/Unit. Any ban imposed by Corporate Office shall be applicable across all Plants / Units Departments/Stations of the Company including Subsidiaries. 7.2 For Company-wide banning, the proposal should be sent by ACVO of the Department/Unit to the CVO through the Chief Executive of the Department/Unit setting out the facts of the case and the justification of the action proposed along with all the relevant papers and documents except for banning of business dealings with Foreign Suppliers of imported coal/coke. The Corporate Vigilance shall process the proposal of the Department/Unit for a prima-facie view in the matter by the Competent Authority nominated for Company-wide banning. The CVO shall get feedback about that agency from all other Departments/Stations. Based on this feedback, a prima-facie decision for banning/or otherwise shall be taken by the Competent Authority. If the prima-facie decision for Company-wide banning has been taken, the Corporate Vigilance shall issue a show-cause notice to the agency conveying why it should not be banned throughout AIR INDIA LIMITED. After considering the reply of the Agency and other circumstances and facts of the case, a final decision for Company-wide banning shall be taken by the Competent Authority. 7.3 There will be a Standing Committee in each Plant / Department/Unit to be appointed by Chief Executive for processing the cases of “Banning of Business Dealings” except for banning of business dealings with foreign suppliers of coal/coke. However, for procurement of items / items/award of contracts, to meet the requirement of Corporate Office only, the committee shall be consisting of Executive Director/General Manager / Dy. General Manager each from Operations, Finance, Law & CMMG. Member from CMMG shall be the convener of the committee. The functions of the committee shall, inter-alia includeProcurement and Legal: i) To study the report of the Investigating Agency and decide if a prima-facie case for Company-wide / wide/Local unit wise banning exists, if not, send back the case to the Competent Authority. ii) To recommend for issue of show-cause notice to the Agency by the concerned department. iii) To examine the reply to show-cause notice and call the Agency for personal hearing, if required. iv) To submit final recommendation to the Competent Authority for banning or otherwise. 7.3 If companywide banning is contemplated by the banning Committee of any plant/ unit, the proposal should be sent by the committee to ED (CMMG) through the Chief Executive of the Plant/ Unit setting out the facts of the case and the justification of the action proposed along with all the relevant papers and documents. CMMG shall get feedback about that agency from all other Plants / Units and based on this feedback, a prima- facie decision for banning / or otherwise shall be taken by the Competent Authority. At this stage if it is felt by the Competent Authority that there is no sufficient ground for companywide banning, then the case shall be sent back to the Chief Executive of the Plant/ Unit for further action at the Plant/ Unit level. If the prima-facie decision for Company-wide banning has been taken, ED (CMMG) shall issue a show-cause notice to the agency conveying why it should not be banned throughout SAIL. After considering the reply of the Agency and other circumstances and facts of the xxxx, XX (CMMG) will submit the case to the Competent Authority to take a final decision for Company-wide banning or otherwise. 7.4 If the Competent Authority is prima-facie of the view that action for banning business dealings with the Agency is called for, a show-cause notice may be issued to the Agency as per paragraph 9.1 and an enquiry held accordingly. 7.5 Procedure for Banning of Business Dealings with Foreign Suppliers of imported coal/coke. i) Banning of the agencies shall apply through out the Company including Subsidiaries. ii) Based on the complaint forwarded by ED (CIG) or received directly by Corporate Vigilance, an investigation shall be carried out by Corporate Vigilance. After investigation depending upon the gravity of the misconduct, Corporate Vigilance may send their report to Executive Director, Coal Import Group to be placed before a Committee consisting of the following :- 1. ED (F&A)/Head of Corporate Finance, 2. ED, CIG/Head of CIG – Convenor of the Committee 3. ED, CMMG/Head of CMMG, Corporate Office 4. ED (Law)/Head of Corporate Law The Committee shall examine the report and give its comments / recommendations within 21 days of receipt of the reference by ED, CIG. iii) The comments / recommendations of the Committee shall be placed by ED, CIG before SAIL Directors’ Committee (SDC) constituted for import of Coal. If SDC opines that it is a fit case for initiating banning action, it will direct ED (CIG) to issue show- cause notice to the agency for replying within a reasonable period. iv) On receipt of the reply or on expiry of the stipulated period, the case shall be submitted by ED (CIG) to SDC for consideration & decision. v) The decision of the SDC shall be communicated to the agency by ED (CIG). 8.1 If the Competent Authority decides that the charge against the Agency is of a minor nature, it may issue a show-cause notice as to why the name of the Agency should not be removed from the list of approved Agencies - Suppliers / Contractors, etc. 8.2 The effect of such an order would be that the Agency would not be disqualified from competing in Open Tender Enquiries but LTE may not be given to the Agency concerned. 8.3 Past performance of the Agency may be taken into account while processing for approval of the Competent Authority for awarding the contract.