As TI has pointed out, integrity pacts are important because they complement weak laws by imposing contractual requirements to prevent and avoid corrupt practices that might otherwise lead to capacity building and waste limited public resources. They also attract more bidders, give them more confidence and offer independent control and technical control. Integrity pacts can reduce high costs and distorting the effects of corruption on public procurement and help create a more welcoming investment climate and garner public support. Integrity pacts strengthen sanctions and thus discourage corruption.  The Department of Foreign Affairs (MEA) has decided that as of January 1, 2013, an Integrity Pact (IP) must be signed between the Ministry and potential bidders/sellers for all purchases/projects worth 50 crore or more. The proposal would apply to all affiliated/subordinate bodies and the ministry`s autonomous institutions, including the Foreign Service Institute, the Indian Council for Cultural Relations and the Indian Council for Global Affairs. The IP essentially provides for an agreement between potential suppliers/bidders and MEA, which obliges individuals/officials of both parties to never resort to any corrupt practice on any aspect of the contract. Only bidders who engage with MEA on the IP would be considered responsible for participating in the tendering process. Any violation would result in disqualification of bidders and exclusion from future commercial relationships. Ip should cover, with respect to a particular contract, all stages of the contract, from the tendering phase (NIT) / pre-bid phase to the conclusion of the contract, i.e. the final payment or the guarantee/guarantee period.
Integrity pacts would be implemented by a panel of two independent external monitors (MEIs) appointed by the ministry in consultation with the Central Vigilance Commission (CVC). The names of the EMIs that are seized from CVC`s authorization are mentioned in the NNT. The EMI would independently and objectively verify whether and to what extent the parties have complied with their obligations during the investigation period. IEM would have access to all contractual documents if necessary. Bidders can submit disputes/claims, if any, with the EMI. The EMI would review the complaints they received and forward their recommendations/notice to the Head of Vigilance of the Ministry of Foreign Affairs.