CAG urges AI-driven audits, stronger CCI coordination to curb collusion in government tenders

NEW DELHI: Comptroller and Auditor General of India K Sanjay Murthy on Wednesday said India should use data and technology to detect corruption and unfair practices in government tenders, while calling for stronger coordination between the CAG and the Competition Commission of India to curb collusion and safeguard public funds.

Speaking at the 17th annual day event of the Competition Commission of India, Murthy said audit and competition enforcement must work together to identify anti-competitive practices in procurement, as these directly impact public expenditure and citizen welfare. He noted that when suppliers collude to fix prices, rig bids, or divide markets, they not only violate competition laws but also cause significant losses to the public exchequer.

Murthy said the CAG is increasingly using artificial intelligence, machine learning and large-scale data analytics to detect irregularities in procurement systems and generate evidence for further action. He added that audit systems are moving beyond traditional sample-based checks towards comprehensive analysis and near real-time monitoring.

According to him, modernised audit mechanisms can identify repeated bid rotations, suspicious vendor clustering, concentration of contract awards and other patterns that may indicate cartelisation or restricted competition in tenders.

Murthy stressed that the CAG and the Competition Commission can create “enormous national value” by sharing data and insights, particularly as India’s public procurement ecosystem becomes more digital and complex.

He also highlighted that CAG findings have helped trigger investigations by the Competition Commission into cartelisation and bid-rigging cases, including a recent April 2026 order against 17 entities for collusive bidding in public tenders. (ANI)

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