NOTICE TO ALL AUTHORIZED DEALERS

Paradyne tracks every order placed under its brand on the Government e-Marketplace (GeM). Every order is monitored in real time. Any dealer who accepts an order under the Paradyne brand and fails to procure UPS from Paradyne will be identified and subjected to the enforcement actions outlined in this policy

1. BACKGROUND & POLICY STATEMENT

Paradyne is a registered Original Equipment Manufacturer (OEM) on the Government e-Marketplace (GeM). Authorized dealers are permitted to accept orders on GeM under the Paradyne brand solely on the condition that all UPS products delivered against such orders are procured exclusively from Paradyne.

It has come to our notice that certain dealers are accepting orders on GeM under the Paradyne brand but are not procuring UPS from Paradyne. Instead, these dealers are sourcing products from unauthorized third parties or supplying non-Paradyne products under the Paradyne brand name. This constitutes a serious breach of the dealer agreement, a violation of GeM policies, and amounts to fraud.

This policy outlines the step-by-step enforcement process that Paradyne will follow in every such case. The process is designed to be fair but firm — giving the dealer an opportunity to comply, while making it unequivocally clear that non-compliance will result in the severest consequences.

2. ORDER TRACKING & MONITORING

Paradyne has access to the complete, real-time visibility into every order placed under the Paradyne brand on GeM. This includes details of the ordering department, order value, product specifications, dealer name, and delivery status.

Every order is cross-verified against Paradyne’s internal sales records. If an order appears on GeM under the Paradyne brand but no corresponding purchase order has been placed with Paradyne by the dealer, it is immediately flagged for investigation.

Dealers should therefore be aware that there is no possibility of accepting orders under the Paradyne brand without Paradyne’ knowledge. Every such order is tracked, recorded, and auditable. 

3. ENFORCEMENT PROCESS

Upon identifying a case where a dealer has accepted an order on GeM under the Paradyne brand without procuring UPS from Paradyne, the following escalation process shall be initiated:

Step 1: DIRECT ENGAGEMENT WITH THE DEALER 

Paradyne shall first reach out to the dealer directly to discuss the matter. The objective at this stage is to understand the dealer’s position and give them a fair opportunity to resolve the issue amicably.

During this engagement, Paradyne will:

a)     Inform the dealer that the order has been detected through GeM

b)     Seek an explanation as to why the UPS was not procured from Paradyne.

c)     Discuss the terms of the dealer agreement and remind the dealer of their obligation to source exclusively from Paradyne.

d)     Negotiate terms for immediate compliance, including procuring the UPS from Paradyne for the current order (if still feasible) and committing to full compliance going forward.

If the dealer cooperates, acknowledges the breach, and agrees to comply with the terms set by Paradyne, the matter may be resolved at this stage. However, Paradyne reserves the right to issue a formal written warning that will remain on record.

Step 2: DEMAND FOR CANCELLED ORDER COPY

If the dealer is unresponsive, evasive, or refuses to engage in good faith during Step 1, Paradyne shall escalate the matter by issuing a formal written notice demanding the dealer to:

e)     Provide a copy of the cancelled order on GeM, as evidence that the order has been cancelled and no non-Paradyne products were delivered under the Paradyne brand.

f)       Provide a written explanation within 7 (seven) calendar days of receipt of the notice.

This notice shall be sent via registered post / email / courier with acknowledgement and shall clearly state that failure to respond within the stipulated timeframe will result in escalation to government authorities and initiation of legal proceedings.

Step 3: ESCALATION TO GOVERNMENT DEPARTMENT & MINISTRY 

If the dealer still does not respond, denies the violation, or refuses to provide the cancelled order copy, Paradyne shall immediately escalate the matter to the concerned government authorities.

Paradyne shall write formal complaints to:

g)     The Buying Department / Organisation: The government department that placed the order on GeM shall be informed that the product delivered (or to be delivered) under the Paradyne brand was not procured from Paradyne and may therefore be counterfeit, sub-standard, or not covered under Paradyne warranty. The department will be advised to verify the authenticity of the product and take appropriate action against the dealer.

h)     The Concerned Ministry: A formal complaint shall be submitted to the ministry under which the buying department operates, highlighting the fraudulent conduct of the dealer and its implications on public procurement integrity.

i)       GeM Authorities: A formal grievance and incident report shall be filed with GeM, supported by evidence from the GeM, requesting investigation and appropriate action against the dealer.

All complaints shall be accompanied by documentary evidence including GeM order, Paradyne’s internal records showing no corresponding purchase order from the dealer, and any prior correspondence with the dealer. 

Step 4: LEGAL ACTION & FINANCIAL RECOVERY

Simultaneously with or following Step 3, Paradyne shall initiate full legal proceedings against the non-compliant dealer. The legal action shall include:

4.1  Civil Suit for Recovery of Money (Fraud)

Paradyne shall file a civil suit for recovery of the full order value as damages. The dealer, by accepting an order under the Paradyne brand and not procuring UPS from Paradyne, has deprived Paradyne of its legitimate revenue and has unjustly enriched itself. The suit shall seek recovery of the order value, consequential damages for loss of brand reputation and warranty liability exposure, cost of investigation and enforcement, and interest on the amounts due from the date of the fraudulent transaction.

4.2  Criminal Complaint for Fraud & Cheating

Paradyne shall file a criminal complaint / First Information Report (FIR) under applicable provisions of the Bharatiya Nyaya Sanhita (BNS) / Indian Penal Code (IPC) for offences including cheating, criminal breach of trust, forgery, and fraudulent misrepresentation. Delivering non-OEM products under the OEM brand to a government department constitutes fraud against both the OEM and the government buyer.

4.3  Trademark Infringement Proceedings

Unauthorized use of the Paradyne brand name to sell non-Paradyne products constitutes infringement under the Trade Marks Act, 1999. Paradyne shall seek injunctive relief, exemplary damages, and costs.

4.4  Consumer Protection Complaint

A complaint shall be filed under the Consumer Protection Act, 2019 for unfair trade practices and misleading the government buyer regarding the origin and quality of the products supplied. 

Step 5: BLACKLISTING & DEBARMENT ON GeM

Paradyne shall pursue every available avenue to ensure the non-compliant dealer is blacklisted and debarred from the Government e-Marketplace. This shall include:

j)       Filing a formal request with GeM for blacklisting the dealer from operating on the platform, citing fraud, misrepresentation, and violation of OEM-dealer terms.

k)     Requesting the buying department to initiate debarment proceedings against the dealer under applicable government procurement rules.

l)       Immediate removal of the dealer from Paradyne’ authorized seller panel on GeM and all other platforms.

m)   Notification to other OEMs and industry bodies about the dealer’s fraudulent conduct to prevent similar incidents across the industry.

Our Commitment: Zero Tolerance, Regardless of Order Size

Paradyne wishes to make it unequivocally clear that this policy will be enforced with absolute seriousness, regardless of the size or value of the order in question. Whether it is an order worth ten thousand rupees or ten crores, Paradyne will pursue full legal action — civil, criminal, and regulatory — against any dealer found in violation. This is not a matter of money; it is a matter of principle. We will deploy every resource at our disposal to ensure that a non-compliant dealer is permanently barred from selling on GeM and any other government procurement platform. No violation is too small to act upon, and no violator is beyond the reach of our enforcement. Every violator will be prosecuted to the fullest extent of the law. No violation is too small to act upon, and no violator is beyond the reach of our enforcement.

Protecting Our Brand, Strengthening Our Partnerships

Paradyne deeply values long-standing, trustworthy relationships with its dealer partners. The vast majority of our dealers operate with integrity, professionalism, and mutual respect — and this policy is not directed at them. This policy exists solely to deter those few individuals who seek to exploit the Paradyne brand for personal gain at the expense of our reputation, our customers, and the integrity of public procurement. Our goal has always been to build enduring partnerships that benefit everyone involved. But where trust is broken, Paradyne will pursue every violation to its fullest legal conclusion — without exception, without compromise, and without regard to the quantum of the order.