New Delhi, October 7: An engineering professionals body-the Consulting Engineers Association of India (CEAI), in a letter to Nitin Gadkari, has alleged that foreign companies are flouting the MSME tendering norms.

The letter has drawn the attention of the government towards flouting of the MSME tendering norms by "the powerful foreign companies". The body mentioned that the government has changed the tendering system to benefit the small and medium enterprises in the country by limiting tenders below Rs 200 crore for Indian companies only.

However, the provisions are being flouted by powerful foreign companies wherein they set up business operations in India by incorporating a company under Companies Act 2013 either as Joint Ventures or Wholly owned subsidiaries or a Liaison/Representative Office.

According to an IANS report, the body's President highlighted that these entities operate as an Indian Company, duly complying with the provisions of the Indian Company Law and Indian tax laws. The current definition allows such companies to enjoy all benefits provided to Indian companies, especially the MSME's.