Public Procurement Ban: Cancellation Lawsuit Guide

For companies doing business with the state (construction, medical supplies, services), a Decision to Ban from Public Tenders (Kamu İhalelerinden Yasaklama Kararı) is effectively a commercial death sentence. It prevents the company not just from entering that specific tender, but from entering any public tender across Turkey for 1 to 2 years. Even becoming a subcontractor becomes impossible.

Fortunately, these decisions are strict administrative acts and are frequently cancelled by courts due to procedural errors committed by careless administrations.

Why Do They Ban You? (Law No. 4735 Art. 25)

The most common reasons for being blacklisted are:

1. Fraud and Intrigue: Rigging the bid, submitting fake documents (e.g., a fake work completion certificate).
2. Failure to Sign Contract: You won the tender but refused to sign the contract or failed to provide the performance bond. (Ban: 6 months to 1 year).
3. Failure to Perform: You signed the contract but didn’t finish the job, or did it horribly, leading to termination.
4. Prohibited Acts: Bribing officials, threatening other bidders.

The Procedure Issues (Common Cancellations)

The administration often rushes the ban process, making fatal legal mistakes. A. Notification of Ban: The ban must be published in the Official Gazette within 45 days of the decision. If they publish it on Day 46, the ban is Unlawful. Use this!

B. Right to Defense: Before banning a contractor for “Failure to Perform,” strict due process is required. Did they send formal warnings (ihtarname)? Did they grant a cure period? If they banned you instantly without following the contract termination protocol, the ban is invalid.

C. Proportionality: Usually, bans are 1 year. If the administration gives 2 years without specifically justifying why the act was “aggravated,” courts often cancel it for being disproportionate.

The Lawsuit Strategy

You cannot appeal to the Public Procurement Authority (KİK) for bans (KİK handles tender complaints, not bans). You must file an Annulment Lawsuit (İptal Davası) in the Administrative Court.

Critical Step: Stay of Execution (YD)

Since a ban is published immediately on the “Blacklist” (EKAP system), it kills your business instantly. You cannot wait 1 year for the lawsuit to end.

• You MUST request Stay of Execution (YD).
• Argument: “If this ban is not paused, my company will go bankrupt, I will fire 100 workers, and I cannot enter the tender next week.” (Irreparable Harm).
• If the court grants YD (usually in 1-2 months), your name clears from the system pending the final verdict.

Criminal Dimension

Note that acts like “bid rigging” (İhaleye Fesat Karıştırma) constitute crimes under the Penal Code (TCK 235). While fighting the administrative ban, you might also face a criminal investigation. A good defense strategy coordinates both fronts.

Professional Legal Support

Contact us for professional legal assistance on this matter.

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⚖️ Attorney Fevzi Yaşkir - Licensed attorney at Konya Bar Association providing legal consultation and case management services for international clients.