Public Recruitment in Crisis: How Questionable Vendors Thrive and Why IT Withdrawals Are a Wake-Up Call

 

By Satyavettā | September 2025

India’s recruitment ecosystem and regional investment climate are facing a crisis of trust. Recent developments — the repeated awarding of government contracts to Eduquity Career Technologies, a vendor linked to multiple exam scandals, and the closure of Tata Consultancy Services (TCS)’s Bhopal office, a major IT hub — reveal systemic governance failures that cannot be ignored.

These are not isolated incidents but warning signs that institutions are being compromised by favoritism, weakened oversight, and short-term cost-saving measures. A closer look reveals how these patterns are impacting students, employees, and regional economies alike.

📌 Eduquity’s Troubled Track Record: Scandals, Protests, and Relaxed Norms

Despite being blacklisted by central authorities in 2020, Eduquity continues to secure contracts from states where governance structures have allowed such tenders to pass unchallenged.

How did Eduquity get the tender despite trailing TCS in technology?

SSC issued an open tender on 2 November 2023 to select the online exam agency, with bidding starting on 18 December. Applicants had to give a technical presentation for the Computer Based Test (CBT). Four companies applied, but Ahmedabad’s Edutest was disqualified for failing to submit a blacklisting certificate.

The remaining three — TCS, Eduquity, and Aptech — presented their proposals. Aptech was later disqualified. In the technical evaluation, TCS scored highest with 94.22 points, ahead of Eduquity’s 87.88. Despite this, the outcome shifted once the financial bids were considered.



⚠ Exam Failures That Shook Public Confidence

  • 2022 Teacher Eligibility Test (TET), Madhya Pradesh: The exam paper leaked mid-test, causing nationwide protests.

  • 2023 Patwari Exam, Madhya Pradesh: Widespread cheating and server failures drew comparisons with past recruitment scandals.

  • 2025 SSC Phase-13 Exam: Server crashes and biometric malfunctions led to demonstrations in Delhi and other cities.

Eduquity placed the lowest bid for the exam

The financial bidding then began, with NSEiT Limited — another online exam provider — also in the fray. Curiously, while NSEiT cleared the technical evaluation, its name did not appear in the SSC’s 2 March 2024 summary report.

On 20 February 2025, bids were opened. Eduquity offered the lowest rate — ₹171 per candidate — covering both operational and centre costs. TCS quoted ₹311, while NSEiT bid ₹289. Despite trailing in the technical score, Eduquity’s cheaper proposal proved decisive in securing the tender.



“Handling of recruitment exams by Eduquity has repeatedly been called into question, raising concerns about the integrity of public examinations,” — Times of India 


 

✅ Contracts Awarded Despite Controversies

  • Madhya Pradesh (2023): A ₹35 lakh contract was granted for online exams, even though the company had a blacklisting record (Tender Tiger).



  • Bihar (2024): Eduquity was among bidders for a government health sector exam project (State Health Society, Bihar).

  • National Testing Agency (2022): Despite controversies, Eduquity was awarded contracts for computer-based testing (Newslaundry).



⚙ Tender Criteria Tailored to Fit One Vendor

Investigations suggest that procurement norms were relaxed to enable Eduquity’s qualification:

  • Reduced IT staff requirements.

  • Lower turnover thresholds that other vendors could not meet (Gyan Ladoo).

💸 Cost-Cutting at the Expense of Quality

Eduquity’s bid of ₹171 per student was significantly lower than TCS’s ₹311 per student, raising red flags about exam infrastructure compromises (Bhaskar English).

📢 Public and Legal Outcry

  • The Madhya Pradesh High Court issued notices in early 2025 questioning whether blacklisted vendors were allowed to participate in state examinations (Times of India).


  • Students, activists, and opposition groups have protested, urging that more credible organizations like IBPS be considered for exam administration (Indian Express).


✅ Nitish Rajput’s Explosive Investigation



In his widely viewed video “Reality of Exams,” Nitish Rajput detailed how Eduquity Career Technologies Pvt. Ltd. repeatedly secured contracts through questionable means:

📌 Key Findings

  • Tender Manipulation: Rules were changed to lower eligibility criteria after Eduquity lost initial bids.

  • Favoritism: Tenders were reissued with altered norms to benefit Eduquity over competitors.

  • Technical Failures: Admit cards showed exam centers near foreign borders; students were sent to remote and unsafe locations.

“Tender cancel hua, rules badle... Eduquity ko direct benefit mila,”

📌 Notable Cases

  • NTA Tender (2020-21): Initially disqualified for lack of resources; later restructured to allow participation.

  • MP Patwari Exam (2023): 144 selections from a single college; multiple top scorers from the same location with suspicious roll numbers.

  • Repeated Pattern: “Tender haarti hi tender cancel hua, rule change hua.”

📉 Rule Changes Favoring One Vendor

  • Exam capacity reduced from 50 lakh to 10 lakh candidates.

  • Financial turnover requirements lowered from ₹100 crore to ₹50 crore over 3 years.

  • Sub-contracting restrictions loosened.

  • Certification weightage and evaluation models altered.

💰 Cost vs. Impact

  • Financial Round (Feb 2025):

    • TCS: ₹311 per student

    • NSEIT: ₹289 per student

    • Eduquity: ₹171 per student

  • Commission claimed ₹224 crore in annual savings, though students reported no relief in exam fees or infrastructure.

“Third-grade equipment, untrained staff, dysfunctional labs — students are paying the price for cheap outsourcing,”

🚫 Impact on Students

  • Exam centers in remote areas with poor facilities.

  • Financial hardship for students from low-income backgrounds.

  • Violent suppression of protests in major cities.

“Woh amir ka bachcha nahi hai ki burger kharid lega... poore din bhookha ghoomega exam ke andar,” 



🔥 Political and Administrative Influence: A Pattern Emerging

While direct evidence of favoritism remains scarce, industry insiders and online forums have raised concerns about vendor selection processes:

  • Claims of undisclosed financial links between influential stakeholders and vendors.

  • Allegations that tender requirements were altered post-bid to accommodate select firms (LinkedIn).

This has fueled public distrust and raised serious questions about how government contracts are awarded.

🚫 TCS’s Office Closure: A Blow to Regional IT Growth

In a parallel development, Tata Consultancy Services (TCS) has announced the closure of its Bhopal office, operational for over a decade.

📊 Key Details

  • Affected Employees: Nearly 1,000 employees face transfers or layoffs (Trak.in).



  • Economic Impact: The office contributed around ₹500 crore annually to the local economy.

  • Government Appeals: State officials have urged the company to reconsider, fearing job losses and economic disruption (Inshorts).



💡 Why This Signals Trouble

  • Tier-2 cities are struggling to create a stable environment for large IT investments.

  • Lack of policy clarity, bureaucratic delays, and governance concerns are deterring sustained investments.

📂 Documents Raising Red Flags

  1. MP Skill Development Tender (2023): Award granted despite prior blacklisting (Tender Tiger).

  2. Bihar Health Society Tender (2024): Eduquity’s participation in critical recruitment projects (State Health Society).

  3. Court Proceedings (2025): Legal notices questioning procurement processes (Times of India).

✅ What Must Be Done

🔍 Independent Audit of All Government Tenders

Transparent audits by third-party agencies must be mandatory for recruitment and other public sector contracts.

📜 Strict Enforcement of Blacklisting Norms

A vendor blacklisted in one state or by a central authority should be barred from participating in tenders anywhere.

💼 Supportive Ecosystem for Regional Investments

Clear policies, faster approvals, and stable governance are essential for attracting and retaining IT investments in smaller cities.

📢 Institutionalized Grievance Mechanisms

Students, employees, and citizens must have access to transparent grievance redressal platforms to hold authorities accountable.

✅ Conclusion: A Call for Reform, Accountability, and Sustainable Growth

The awarding of contracts to a controversial vendor and the withdrawal of one of the largest IT firms from a regional hub are not coincidences. They are symptomatic of deeper governance flaws, opaque procurement processes, and a disregard for long-term public interest.

For India to maintain its reputation as a growth-driven economy, it must enforce strict procurement norms, safeguard public trust, and create a business environment conducive to long-term investments.

The time to act is now — because without reforms, students, employees, and regional economies will continue to bear the brunt of short-sighted decisions.





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