Industry Focus
Government & PSU
Legal advisory for government entities and public sector undertakings
Government departments, PSUs, and public sector banks operate under constitutional law, government procurement rules, and the Companies Act. Corpus Juris Legal advises government entities on corporate governance, commercial transactions, and dispute resolution.
The Legal Landscape
Government departments, public sector undertakings, and public sector banks operate under a distinct legal framework that intersects constitutional law, administrative law, government procurement rules, and the Companies Act. PSU board governance requires compliance with DPE guidelines, Ministry of Corporate Affairs directions applicable to government companies under the Companies Act 2013, and specific directions from the administrative ministry — a three-way compliance obligation with no private sector equivalent.
Government procurement law — the General Financial Rules, Central Vigilance Commission guidelines, and the Procurement Policy Directives — creates a framework for tendering and contract award that is simultaneously designed to ensure transparency and to protect the public exchequer. Tender challenges before High Courts — on grounds of arbitrariness, violation of tender conditions, or mala fides — are a significant area of litigation for companies dealing with government contracts. Corpus Juris Legal represents both government agencies defending their procurement decisions and bidders challenging outcomes that appear legally infirm.
RTI proceedings, administrative appeals, and constitutional litigation are areas where government entities frequently need specialist legal support. The interface between departmental proceedings against government employees and the protections available under service law requires careful navigation. Corpus Juris Legal advises government clients on all aspects of their legal exposure — commercial, constitutional, and administrative — with the understanding that government legal matters carry a public interest dimension that demands a higher standard of care.
Key Legal Challenges in the Govt & PSU Sector
- ◆Government procurement and tender compliance
- ◆PSU board governance obligations
- ◆State liability and sovereign immunity
- ◆PPP and concession disputes
- ◆RTI and administrative law
How Corpus Juris Legal Helps Govt & PSU Companies
Regulatory Framework
- ◆General Financial Rules 2017 (government procurement)
- ◆Companies Act 2013 (sections 149, 152 — government companies)
- ◆Department of Public Enterprises Guidelines
- ◆Central Vigilance Commission Guidelines on Tendering
- ◆Right to Information Act 2005
- ◆Public Procurement Order 2017 (Make in India preference)
- ◆MSME Development Act 2006 (mandatory MSE procurement)
- ◆Constitution of India (Articles 14, 19, 311 — government contracts and service law)
- ◆Central Administrative Tribunal Act 1985
Frequently Asked Legal Questions
What are the key governance obligations for PSU boards?
PSU boards must comply with Companies Act 2013 requirements including minimum board meetings, audit committee composition, and related party transaction approvals. Additionally, DPE guidelines mandate specific board composition requirements (functional directors, government nominee directors, independent directors), performance evaluation frameworks including MoU targets with the administrative ministry, and compliance with CVC guidelines on vigilance matters. Government company annual accounts are subject to CAG audit under section 143(5)-(7) of the Companies Act, creating an additional accountability layer.
On what grounds can government tenders be challenged in court?
Government procurement decisions are subject to judicial review under Article 14 of the Constitution. Common grounds for challenge include: violation of stated evaluation criteria, procedural irregularities in bid opening or evaluation, unreasonable or arbitrary qualification conditions, post-tender modifications that alter the competitive position, failure to provide adequate reasons for rejection, mala fides or bias in the evaluation process, and deviation from the principles of the General Financial Rules. The Delhi High Court applies a proportionality standard and will interfere where the procurement decision is shown to be arbitrary, discriminatory, or in violation of the entity's own stated terms.
How does the RTI Act affect legal strategy for government entities?
The Right to Information Act 2005 requires disclosure of information held by public authorities, subject to limited exemptions under sections 8 and 9. Government entities must designate Public Information Officers, respond to RTI applications within 30 days, and maintain records in a manner that facilitates disclosure. Legal opinions and advice given to government clients are not automatically exempt — only cabinet papers and information affecting security of the state qualify for absolute exemption. First appeals lie to designated First Appellate Authority, and second appeals to the Central Information Commission in New Delhi. Legal strategy for government matters must account for the possibility that correspondence, file notes, and legal opinions may be disclosed under RTI.
What to Expect When You Instruct Us
Every new Govt & PSU engagement begins with a dedicated briefing — not a generic intake call. We invest time understanding the specific regulatory environment your business operates in, the commercial constraints that shape your legal decisions, and the risk appetite that should inform our advice.
Your matter is assigned to a partner with specific experience in Govt & PSU sector legal requirements. The same partner who takes your briefing is the one who signs off on your advice notes, appears at your regulatory meetings, and is accountable for outcomes. Partner-level attention is not reserved for the largest mandates — it is the standard at Corpus Juris Legal.
We maintain ongoing sector intelligence for the Govt & PSU sector — monitoring regulatory updates, enforcement trends, and policy developments that affect your legal exposure. Our retainer clients receive proactive alerts when changes are relevant to their operations, not reactive advice after the fact.
Sector Advisory
Talk to Our Govt & PSU Legal Team
Our Government & PSU sector practice is led by a partner with hands-on experience in your industry's regulatory environment. First conversation is substantive — not a sales call.
Schedule a ConsultationWhatsApp Our CounselServices in This Sector
- ◆Corporate Governance
- ◆Contract Drafting & Review
- ◆Commercial Litigation
- ◆Domestic Arbitration
- ◆Regulatory Compliance
Ready to Discuss Your Govt & PSU Legal Matter?
Partner-led advisory. Same-day response on retainer matters. No juniors running your file.