ANNEXURE-IV (To be executed on a stamp paper of requisite value) [To be submitted along with the submission of the Application/ Proposal. To be signed by the Applicant/Proposer and the authorized signatory of the Corporation] INTEGRITY PACT This Integrity Pact is made at on this day of 2010, hereinafter referred to as the Agreement. BY AND BETWEEN THE PARTIES: [Please insert name and address of the Individual/firm/company/consortium members] through [please fill in description of the details] Applicant/Proposer, (which expression shall unless repugnant to the meaning or context hereof include its successors and permitted assigns), acting through Mr. [please fill in name of the person], duly authorized vide board resolution/power Of Attorney dated [please fill in date]. AND National Skill Development Corporation a non-profit company, registered under the Companies Act, 1956 and licensed under Section 25 of the same, having its registered office at D-4, Clarion Collection, Shaheed Jeet Singh Marg, New Delhi- 110016, "Corporation", (which expression shall, unless it be repugnant to the subject or context thereof, include its successors and permitted assigns) acting through Mr. [please fill in name of the person and his/her designation], duly authorized vide board resolution dated [please fill in the date]. The Applicant/Proposer and the Corporation are hereinafter individually referred to as Party and collectively as Parties. Page 1
WHEREAS: A. The Corporation is established as a public private partnership with the object of developing unskilled and semi-skilled labour force into productive and skilled labour and to establish, manage, run and support institutes and polytechnics for achieving this objective. The primary activity of the Corporation is to utilize and manage the funds transferred to it by National Skill Development Fund NSDF. These funds are invested by the Corporation into various skill developments projects for achieving its objectivities; B. The Corporation s policy requires the Applicant s/proposer s as well as any of their representatives, officers, employees, agents, associates, consultants and sub-consultants observe the highest standards of ethics, fairness and transparency, at all times. C. The Corporation values full compliance with all relevant laws and regulations, and the principles of economical use of resources. D. The Corporation believes that bribery and corruption weakens good governance and economic development in India and trembles the moral values of our society. E. The Applicant/Proposer has submitted an Application/Proposal to the Corporation for seeking financial assistance which shall be utilized by the Applicant/Proposer for meeting the project cost involved in the purpose of execution of the [please fill in description of the project] Project. NOW THERERFORE, THESE PRESENTS WITNESSESETH AS FOLLOWS: 1. OBLIGATIONS OF THE APPLICANTS/ PROPOSERS 1.1 The Applicant/Proposer hereby agrees that the Applicants/Proposers and their associates, officers, employees, agents and advisers shall observe the highest standards of ethics during every stage of evaluation of his/its/their application for financial assistance and in effecting the Project. 1.2 The Applicant/Proposer hereby agrees to take all measures necessary to prevent corrupt practices at the stage of evaluation of the Applicant/Proposer submitted by it and while execution of the Project. Page 2
Corrupt Practice shall mean and include, but not be limited to, offering, giving, receiving, or soliciting, directly or indirectly, of anything of value to influence the actions of any person connected with the evaluation process or, offering of employment to, or employing, or engaging in any manner whatsoever, directly or indirectly, any official of the Corporation or its Constituents members (PEC, PAC, Contracting Authority, Project Monitor, internal and external auditors, and/or any person so appointed by the Corporation ), associated in any manner, directly or indirectly, with the evaluation process before or after the execution thereof. 1.3 The Applicant/Proposer and their associates, officers, employees, agents and advisers shall not commit any criminal offence under the relevant anticorruption laws of India. 1.4 The Applicant/Proposer shall not engage in any fraudulent practice, including, but not be limited to misrepresentation or omission of facts or suppression of facts or disclosure of incomplete facts, in order to influence the evaluation process/monitoring process/ auditing process etc. at any stage. 1.5 The Applicant/Proposer shall not enter into any undesirable practice at any stage of evaluation of the Applicant s/proposer s proposal. Undesirable practice shall mean and include, but not be limited to, establishing contact with any person connected with or employed or engaged with the Corporation or its constituent members with the objective of canvassing, lobbying or in any manner influencing or attempting to influence any official, worker or employee or advisers of the Corporation or its constituent members, for carrying out the Project. 1.6 The Applicant/Proposer or any of its associate, officer, employee, agent, adviser shall not use improperly, for purposes of competition or personal gain, or pass on to others, any information provided by the Corporation as part of the business relationship, regarding plans, technical proposals and business details, including information contained or transmitted electronically. 1.7 The Applicant/Proposer shall not indulge into any coercive practice. Coercive practice shall mean impairing or harming or threatening to impair or harm, directly or indirectly, any person or property to influence any person s participation or action in the evaluation process. Page 3
1.8 The Applicant/Proposer shall not instigate third persons to commit offences outlined above or be an accessory to such offences. 1.9 In case the Application/Proposal of the Applicant/Proposer gets approved, then in such a case the Applicant/Proposer shall maintain absolute transparency and fairness while execution of the Project. 1.10 The Applicant/Proposer shall demonstrate existence of code of good conduct, forbidding unethical practices. 2. REPRESENTATIONS AND WARRANTIES 2.1 The Applicant/Proposer hereby makes the following representations, warranties and confirmations; and states that the same are true, correct, valid and subsisting in every respect as on the date of this Agreement and shall remain true, correct, valid throughout the term of the Agreement: (i) The Applicant/Proposer hereby declares that any member of the consortium or any of their associates, representatives, employees, agents or advisers have not been charge-sheeted by any agency of the Government of India or convicted by any Court of Law. (ii) The Applicant/Proposer hereby declares that no investigation by any regulatory authority is pending either against the Applicant/Proposer or against any member of the consortium or any of their associates, representatives, employees, agents or advisers or against their CEO or any of their directors/ managers. (iii) The Applicant/Proposer hereby states that the Applicant/Proposer or any of its representatives, officers, employees, agents, associates, consultants and sub-consultants have not been convicted by a Court of Law or indicted or adverse orders passed by any regulatory authority which could cast a doubt on the ability of the Applicant/ Proposer to undertake the Project or which relates to a grave offence that outrages the moral sense of the community. (iv) The Applicant/Proposer hereby certifies that in the last three years, the Applicant/Proposer or any of the consortium members or their associates have neither failed to perform on any contract, as evidenced by imposition of a penalty by an arbitral or judicial authority or a Page 4
judicial pronouncement or arbitration award, nor been expelled from any project or contract by any public authority nor have had any contract terminated by any public authority for breach on the part of the Applicant/Proposer. (v) The Applicant/Proposer hereby certifies that the Applicant/Proposer or the consortium members have not directly or indirectly or through an agent engaged or indulged in any corrupt practice, fraudulent practice, coercive practice, undesirable practice or restrictive practice, in respect of any tender or request for proposal/invitation for proposal/request for qualification/expression of interest issued by or any agreement entered into with any public sector enterprise or Central Government, or any State Government. 3. RIGHTS OF THE CORPORATION 3.1 If the Corporation obtains knowledge of such conduct of an Applicant/Proposer, or of an employee or a representative or an associate of an Applicant/Proposer, which constitutes corruption under the Indian Penal Code or the Prevention of Corruption Act, 1988 or is in violation of any obligation mentioned herein, or if the Corporation has substantive suspicion in this regard, the Corporation may initiate an appropriate legal proceedings in accordance with the applicable laws. 3.2 In case the Corporation is of the view that the Applicant/Proposer or any of its employees, agents, associates, or representatives have engaged in corrupt, fraudulent, collusive or coercive practices during the evaluation of the Application/Proposal or during the execution of the Project, then, in such a case, the Corporation shall have the right to withhold the non-disbursed portion of the loan or grant and may also take steps for the recovery of funds already disbursed. 3.3 The Corporation shall have the right to blacklist the Applicant/Proposer from any future financial assistance scheme or may also request the Central or State Government to blacklist the Applicant/Proposer for any future schemes. Such blacklisting may be for a period of 5 years. The Corporation may consider initiating necessary action in case:- Page 5
(i) If the Applicant/Proposer, either at the evaluation process or during the execution of the Project transgresses through a violation of any obligation mentioned herein; or (ii) If the Corporation discovers that any of the declarations made under Clause 2 of this Agreement is incorrect and false, such as to put the Applicant s/proposer s reliability or credibility in question. 3.4 If the Applicant/Proposer proves that he has restored/recouped the damage caused by him/them/it and has installed a suitable corruption prevention system, the Corporation may revoke the exclusion prematurely at its sole discretion. 4. DURATION 4.1 This Agreement shall be effective from the date of execution and shall continue and subsist till the completion /execution/implementation of the Project to the satisfaction of the Corporation and its constituent members. 5. MISCELLANEOUS 5.1 This Agreement shall be governed by and construed in accordance with the laws of India. 5.2 Any amendment, alteration, addition, variation or termination notice shall be in writing. 5.3 If one or several provisions of this Agreement turn out to be invalid, the remainder of this Agreement shall remain valid. In such a case, the Parties will strive to come to an agreement as per their original intentions. Page 6
IN WITNESS THEREOF THE PARTIES IN THEIR FREE VOLITION AND FULL UNDERSTANDING WITH THE INTENT TO LEGALLY BIND THEMSELVES TO THIS AGREEMENT EXECUTE THIS AGREEMENT THROUGH THEIR DULY AUTHORISED PERSONNEL: For the Corporation For the Applicant/Proposer WITNESSES:- Witness 1 : Witness 2: Page 7