DPE for speedy dispute resolution in govt depts

Easing Out:

♦ DPE issued guidelines on AMRCD on Dec 14, 2022

♦ But there seems a lack of clarity over the issue

♦ AMRCD has 2 levels

♦ Any party aggrieved with decision at level-1, may appeal at level-2 within 30 days

New Delhi: Despite the presence of a mechanism to resolve issues between government departments and organizations, on the one hand, and central public sector enterprises (CPSEs), there is still a great deal of confusion. In order to end such confusion, the Department of Public Enterprises (DPE), under the Ministry of Finance, has asked all government departments and organizations to take any disputes with CPSEs to the Administrative Mechanism for Resolution of CPSEs Disputes (AMRCD).

Some government departments and organizations lacked clarity on the applicability of the AMRCD guidelines on such disputes, official sources told Bizz Buzz. The DPE issued the guidelines on December 14, 2022, but there seems a lack of clarity over the issue.

The DPE recently informed government departments and organizations that the interpretation and application of commercial contracts in the case of disputes “shall be taken up under the AMRCD only.”

Whether it is a dispute between two CPSEs, between a CPSE and a Central government ministry or department, between a CPSE and a Central government authority or university, or between a CPSE and a State government authority, university or state PSE, the resolution would be under the AMRCD.

The AMRCD has two levels. At the first level, the disputes shall be arbitrated upon by a committee comprising Secretaries of the administrative ministries and departments to which the disputing CPSEs belong and Secretary, Department of Legal Affairs.

In case the two disputing parties belong to the same ministry or department, the committee will comprise Secretary of the administrative ministry or department concerned, Secretary, Department of Legal Affairs, and Secretary, DPE. In case of a dispute between CPSE and a State government department, the matter shall be arbitrated through a committee comprising Secretary of the ministry or department to which the CPSE belongs, Secretary, Department of Legal Affairs, and a senior officer (not below the rank of secretary in the State government) nominated by the Chief Secretary of the State concerned. Any party aggrieved with the decision of the committee at the first level (tier) may prefer an appeal before the Cabinet Secretary at the second level (tier) within 30 days from the date of receipt of decision of the committee at the first level.