Rule 144(xi) GFR Registration 2026: DPIIT Registration & Eligibility Guide

Rule 144(xi) of the General Financial Rules (GFR), 2017 is an important provision for businesses participating in Indian government procurement. It deals with procurement from bidders or entities connected with countries sharing a land border with India and was introduced to address concerns relating to national security, defence and sensitive procurement.

For businesses looking for Rule 144(xi) GFR registration in 2026, it is important to understand who is covered, when DPIIT registration may be required, what documents are involved and how the registration framework works.

Quick Summary

What Is Rule 144(xi) of GFR?

Rule 144(xi) was introduced into the General Financial Rules, 2017, to enable the Government to impose restrictions on procurement from bidders or entities connected with countries sharing a land border with India.

The provision allows the Government to require registration or impose other conditions where considered necessary on grounds including defence of India, national security and related concerns.

The framework became particularly important for government tenders where bidders, manufacturers, service providers or other entities involved in the supply chain have relevant ownership or control connections.

The Department for Promotion of Industry and Internal Trade (DPIIT) has a role in the registration framework prescribed for applicable bidders.

Is Rule 144(xi) DPIIT Registration Mandatory in 2026?

Not for every business or every government tender.

This is one of the most important points businesses should understand.

Rule 144(xi) does not mean that every company incorporated in India must obtain DPIIT registration. Applicability depends on the nature of the bidder, its ownership or beneficial ownership, relevant control or other covered relationships, as well as the applicable procurement instructions and tender conditions.

Therefore, before applying for registration, a bidder should check: -

1.    Whether Rule 144(xi) applies to the particular procurement.
2.    Whether the bidder falls within the specified category.
3.    Whether the tender specifically requires registration or a declaration.
4.    Whether any applicable exemption or special procurement condition exists.
5.    Whether the bidder has relevant ownership, control or beneficial ownership connections.

The safest approach in 2026 is to check the latest applicable government instructions and the individual tender document before determining the compliance requirement.

Who Can Be Covered Under Rule 144(xi)?

Rule 144(xi) can be relevant to bidders and other entities having specified connections with countries sharing a land border with India.

India shares land borders with: -

Depending on the applicable procurement framework, the provisions can affect companies, firms, LLPs, partnership entities, proprietorships, joint ventures and other legal entities.

However, having a business relationship with an entity located in one of these countries does not automatically mean that DPIIT registration is required for every procurement. The specific Rule 144(xi) conditions and tender requirements must be examined.

What Is DPIIT Registration Under Rule 144(xi)?

Under the applicable registration framework, DPIIT processes registration applications relating to bidders covered by Rule 144(xi).

The registration framework focuses significantly on the identity and ownership structure of the bidder. Information relating to beneficial ownership, shareholders, directors and persons exercising control may therefore be relevant.

The objective is to enable the competent authority to assess whether the bidder falls within the restrictions applicable to procurement from entities connected with countries sharing a land border with India.

Documents Required for Rule 144(xi) Registration

Applicants are generally required to submit the following documents and information: -

• The Covering Letter
• Letter of authority in favour of the signatory
• Details of Bidder (including bidders having ToT arrangement) as per Appendix ‘A’
• Details of Manufacturer/Service Provider/Contractor, if different from bidder, as per Appendix ‘B’
• Details of entity with whom there is/are ToT arrangement(s) as per Appendix ‘C’
• Details of item (goods/services/works) for which registration is being sought as per Appendix ‘D’
• Details of Bidder for security clearance as per Appendix ‘E’
• Details of Manufacturer/Service Provider/Contractor/Entity providing ToT, if different from bidder, for security clearance as per Appendix ‘F’
• Details of Sensitive Sector & Sensitive Technologies in case(s) of ToT arrangement as per Appendix ‘G’

Note: Refer to the respective Appendix A–G links for the prescribed formats and detailed requirements for each document.

How to Apply for Rule 144(xi) DPIIT Registration?

Where registration is required, the broad process can be understood as follows: -

Step 1: Check Applicability

First determine whether Rule 144(xi) applies to the bidder and the relevant government procurement.

Step 2: Review the Tender

Carefully examine and assess the tender document for requirements relating to Rule 144(xi), registration, declarations, ownership or beneficial ownership.

Step 3: Prepare Business and Ownership Details

Gather or collect all the incorporation documents, shareholding information, beneficial ownership details and information about the relevant manufacturers, service providers or technology arrangements.

Step 4: Complete the Prescribed Application

Where applicable, prepare and organize the registration application and the declarations in the format as it is prescribed by the competent authority.

Step 5: Submit the Supporting Documents

Submit the various required documents and the information through the applicable DPIIT-prescribed process.

Step 6: Scrutiny and Registration

The competent authority examines and verifies the application and supporting information. Where the application is approved, registration is granted subject to the applicable conditions.

Businesses should ensure that all ownership and beneficial ownership information is accurate because incorrect declarations can create procurement and compliance risks.

Does an Indian Company Need Rule 144(xi) Registration?

Not simply because it is incorporated in India.

An Indian company should examine its ownership, beneficial ownership, control and relevant business arrangements in light of the applicable Rule 144(xi) requirements.

For example, where a tender contains a specific declaration concerning bidders connected with countries sharing a land border with India, the company should verify its ownership and control structure before submitting the bid.

What Happens If Applicable Requirements Are Ignored?

Failure to comply with applicable Rule 144(xi) conditions or tender requirements can result in consequences such as: -

• Rejection of the bid
• Disqualification from the procurement process
• Cancellation of the contract
• Termination of the contract
• Action under the applicable procurement rules or tender conditions

A false declaration can create additional legal and commercial risks.

Therefore, businesses should verify compliance before submitting the tender, rather than attempting to correct the issue after bid submission.

Important 2026 Compliance Point

Businesses should be cautious about relying on older articles or tender guidance because procurement requirements can change through the government orders, amendments and tender-specific instructions.

In 2026, the appropriate approach is to verify the latest applicable Rule 144(xi) instructions, Department of Expenditure directions, DPIIT requirements and the specific tender conditions.

In other words, do not assume that: -

• Every Indian company requires Rule 144(xi) registration;
• Every bidder connected with a land-border country automatically requires registration; or

The applicable government procurement document should be carefully reviewed before deciding what compliance is required.

Need assistance with Rule 144(xi) applicability or government tender compliance? Remind Legal can help businesses review the applicable requirements and prepare the necessary documentation.

Conclusion

Rule 144(xi) GFR registration is an important compliance consideration for businesses participating in Indian government procurement. The framework focuses on specified bidders and relationships involving countries sharing a land border with India, particularly from the perspective of ownership, beneficial ownership and control.

For 2026, businesses should avoid relying on the blanket statements about the mandatory registration. Instead, they should review and examine the latest Rule 144(xi) framework, applicable government procurement instructions and the specific tender conditions before bidding.

Proper assessment at the beginning can help businesses avoid bid rejection, compliance issues and unnecessary documentation.