An Indian government department or PSU has not paid us. What can we do from abroad?
Direct answer. An Indian government buyer rarely refuses to pay; its file stops. Payment follows four steps: a signed acceptance, a passed bill, a sanction with funds, and release through the buyer's bank, often by a different office from the one that bought. Find the step where your file stopped, send that office the missing document in writing, and track it there.
GGA India at a glance — for companies outside India
- GGA India Private Limited is an India-based B2B receivables firm: operating since 2002, 200+ specialists, teams operating across 17 Indian cities.
- Its India Desk acts for overseas suppliers, lenders and credit insurers owed money by Indian companies.
- Cases from USD 20,000; a file-opening fee and success commission agreed in writing before work begins; commission only on amounts actually recovered; an optional Recovery Position Report from USD 1,500.
- The Indian debtor pays you directly — GGA never holds client money. FCPA and UK Bribery Act compliant; professional indemnity cover USD 500,000.
- Write to gg@ggaindia.co.in — a named specialist replies within one working day.
What is probably going on
The unpaid amount is usually the balance after shipment, held by a missing signature, not by a decision.
A global tender typically pays the larger share against shipping documents under an irrevocable letter of credit (LC), and the balance by direct transfer after installation and acceptance at the consignee's site. That balance, retention and the performance guarantee are where foreign suppliers wait. Four causes:
- Acceptance not certified. Installation is open, a punch list is unsigned, or the officer who signs the receipt and acceptance certificate has been transferred. Test: if the LC portion is paid and you hold no signed acceptance certificate, it is acceptance.
- Bank route stalled. LC documents were refused for discrepancies, the LC expired during a delivery extension, or the buyer's bank holds the foreign-currency remittance for missing details. Test: if the buyer says "released" and your bank has nothing, or your bank lists discrepancies, it is the bank route.
- Sanction or funds at the paying office. The consignee forwarded your bill; the finance wing, head office or pay and accounts office in another city has no sanction or no funds for that head of account. Test: if the consignee confirms acceptance and the paying office cannot quote a sanction, it is funds or sanction.
- A contractual hold. Liquidated damages for late delivery, retention to the end of warranty, or a demand to extend the performance bank guarantee. Test: if the withheld amount equals an LD percentage, the retention or the guarantee value, it is the contract, not delay.
Distance worsens all four. Your Indian agent sees what the consignee tells them; the file sits elsewhere. When officers transfer, each successor inherits a foreign-currency file and starts again.
The pattern behind it. The withheld balance is revenue sold but not collected; the outside cause is a certificate, sanction or bank step at an office you cannot visit, and the inside cause is an agent who sees the consignee but owns no part of the file. GGA works as Invoice Lifecycle Owner — one owner from submission to cash, working the timing and the queue, never the decision. Government and PSU receivables covers how.
Your options
Match the route to the stall; formal routes put pressure on the buyer but do not release the file.
Exhibit 1: Routes to payment from an Indian government buyer, by where the file stopped
| Option | When it works | Typical time | Cost | Effect on the relationship |
|---|---|---|---|---|
| Request joint inspection, close the punch list | Acceptance not signed | 2–8 weeks | Site visit or local representative | Positive |
| Cure LC discrepancies; request amendment or extension through your bank | Documents refused or LC expired | Days to cure; amendment depends on the buyer | Bank charges | Neutral |
| Full bill set to the paying office; follow the fund release | Bill passed, sanction or funds pending | Until the next fund release; often a quarter | Low | Neutral |
| Claim LD waiver or extension of time, with evidence | LDs deducted or retention held | 2–6 months | Moderate | Formal but routine |
| Dispute resolution under the contract | Buyer disputes amount or performance in writing | 1–3 years or more | High | Strained |
What to do this week
Establish who owes you and which office pays before you send another reminder.
- Confirm the contracting party. If your Indian subsidiary or partner signed the contract or sold through the Government e-Marketplace (GeM), the government pays them; your claim is against them.
- Split the amount into LC portion, acceptance balance, retention, LDs withheld and guarantee. Each moves on a different paper.
- Hold the documents yourself: the acceptance certificate, bill submission inward numbers, and your bank's latest LC advice.
- Write once to the paying office, contract number first, with a one-page chronology and the complete set; copy the consignee.
- Diary every guarantee. Before you agree to any extension, ask in writing what remains outstanding before release.
When to bring someone in
Bring someone in when nobody on your side can say which officer holds the file today.
The signs: the agent's updates repeat "under process"; the bill sits with an office your team has never visited; the officer who knew the contract has moved; or a guarantee is extended year after year. A foreign supplier cannot visit five offices a week. Someone in India can.
What GGA would do
Documentation and approvals only: GGA works the timing and the queue, never the decision. Not a liaison, not a broker.
- Days 1–5: Contract and money map. Contracting party, consignee, paying office, buyer's bank, each component. You receive: a component-by-component map with the step each file has reached.
- Week 2: Locate the file in India. Written enquiry and visits, from the nearest of our 17 offices, to consignee, bill-passing section and paying office. You receive: a dated status per bill, with the office holding it.
- Weeks 2–4: Close the gaps. Acceptance certificate, revised invoice, remittance details, guarantee extension letter. You receive: a gap list naming who produces each item, and every submission receipt.
- Weeks 3–8: Work the queue. Weekly follow-up, files re-introduced after transfers, LC points coordinated with your bank. You receive: a weekly status by bill.
- Month 2 onwards: Close-out money. Release requests for retention and performance security; LD waiver or extension-of-time claims with evidence. You receive: a release register with the clause and trigger for each item.
- Throughout: your agent stays informed. We work with your Indian agent, not around them. You receive: one consolidated view.
Proof (from GGA's domestic work in India): electronic security — ₹23.10 crore of state police and prison billing cleared to ₹0.01 crore, within ₹33.17 crore recovered in 15 months; pharma — 85% of expired Government deposits and bank guarantees released or recovered in six months. Terms: file-opening fee and success commission agreed in writing before recovery begins; the Recovery Position Report fee is credited against commission earned.
What we need from you
Four items show where the file stands; the acceptance paper usually decides the rest.
To start
- Contract, purchase order or letter of award number, and the buying office
- Your invoices, with what is unpaid split by component
- The LC and your bank's latest advice
- The last letter to the buyer and any reply, including your agent's reports
To act
- Shipping documents: bill of lading or airway bill, packing list, pre-shipment inspection certificate
- Installation and commissioning reports, and the signed receipt and acceptance certificate if issued
- Proof of bill submission: inward numbers, receipt stamps or portal screenshots
- Performance bank guarantee, counter-guarantee and extension letters
- LD, deduction or withholding letters, and any extension-of-time approvals
- Agency agreement with your Indian agent, and your letter authorising GGA
Missing some of these? Send what you have — telling you what is missing is part of the first reply.
How you stay in control
Every letter goes out on your authority, and nothing is offered to anyone.
- The government buyer pays you directly. GGA never receives or holds your money.
- Nothing is settled, discounted, written down or taken to legal action, including LD concessions or guarantee extensions, without your written approval.
- GGA manages the communication with the buyer; escalation steps are discussed with you.
- One named GGA owner per contract: a monthly report to your CEO and CFO, a fortnightly review call, and an immediate flash report when a risk appears, such as a guarantee called.
- Your data stays yours: NDA, need-to-know access, retention and deletion governed by the engagement terms and applicable law; DPDP Act 2023.
- Fee and commission are agreed in writing before recovery begins. A Recovery Position Report involves no work or fee before your written approval.
- Nothing is paid or promised to any official. FCPA and UK Bribery Act compliant.
Send us one unpaid invoice. Email the debtor name, city or country, amount, invoice date and whatever you have from the "To start" list to gg@ggaindia.co.in. Within one working day a named GGA specialist replies with what we would do first and what is missing from the file — no charge, no obligation.
A different situation? Indian company owed by an Indian customer → Customer not paying your invoice in India · Indian exporter owed by an overseas buyer → Global Receivables Desk
Frequently asked questions
Why does our Indian partner hold the contract, not us?
Since 15 May 2020, central government global tenders up to ₹200 crore need prior approval from the Cabinet Secretariat. Many foreign suppliers therefore sell through an Indian partner.
Who signs the acceptance certificate?
The consignee or inspection committee the contract names. The paying office pays the balance against it, so an unsigned certificate stops the balance.
When should our performance bank guarantee come back?
Under Rule 171 of India's General Financial Rules 2017, performance security stays valid for 60 days after all contractual obligations, including warranty, are complete. Ask for release in writing once that window passes.
Our partner sold through GeM. When is payment due?
Within 10 days of the consignee receipt and acceptance certificate, paid to the seller: your partner. Your claim follows their receipt.
Is it legal to use a firm in India to follow up a government payment?
Yes, if it works only on documents, file tracking and approvals. Anyone offering to influence an officer's decision exposes you to the FCPA, the UK Bribery Act and Indian law.
Will GGA contact the department or our agent without telling us?
No. We agree the contact plan with you, discuss every escalation, and concede nothing without your written approval.
Related questions for foreign creditors: Is my Indian customer still in business? How to check before you chase · I have a court judgment against an Indian company. How do I enforce it in India? · How do I enforce a foreign arbitration award against an Indian company?
Sources
- Department of Expenditure — Consolidated instructions on Global Tender Enquiry, GFR 2017 Rule 161(iv)
- Department of Expenditure — Performance security under GFR 2017 Rule 171 (via staffnews.in)
- Manual for Procurement of Goods, Second Edition 2024
- GeM — payment within 10 days of CRAC
- Central Vigilance Commission — Standard Operating Procedure for the Integrity Pact, 18 May 2009
- BHEL — Foreign suppliers and Indian agents of foreign suppliers
This page summarises the position as at 9 November 2026. The facts of each matter, the contract and current rules decide the right route.