The Central Board of Secondary Education (CBSE) is set to impose penalties on its on-screen marking (OSM) service provider, Coempt Edu Teck, following reported issues in the evaluation of Class 12 answer sheets. However, the board may be unable to blacklist the company as the final contract reportedly no longer includes such a provision.
According to HT reports, the Hyderabad-based company is expected to face financial penalties as outlined in the August 2025 tender document. The tender includes a structured penalty system based on the severity of lapses and delays in corrective action.
The August 28 tender also introduced cascading penalties tied to response timelines, covering operational and security-related failures.
Blacklisting Clause Removed Before Contract Award
A key change came through a corrigendum issued on September 20, 2025, which removed references to blacklisting from the original tender document before the contract was awarded on December 5.
The original tender had allowed a committee to consider multiple actions, including termination and blacklisting. It stated, "The issue will be put in front of a committee as decided by CBSE. The committee may send a show cause notice for forfeiture for PBG (performance bank guarantee), blacklisting and termination of contract."
However, this was later revised to, "The committee may send a show cause notice for forfeiture for PBG and termination of contract."
Another provision in the August tender also originally included blacklisting as a penalty option for repeated mistakes. It stated, "If any of the mistakes from 'Other Mistakes' is repeated by the bidder, then CBSE reserves the right for forfeiture for Security Deposit, Blacklisting and Termination of contract."
This was later modified to remove blacklisting entirely, "If any of the mistakes from 'Other Mistakes' is repeated by the bidder, then CBSE reserves the right for forfeiture for Security Deposit, and Termination of contract."
As a result, CBSE’s current contract framework allows financial penalties, security deposit forfeiture, and termination of contract, but not blacklisting.
How Penalties Will Be Applied
Under the terms of the contract, deadlines will be rigidly enforced, and delays in remedying an issue may attract a penalty of Rs 1 Lakh per 15 minutes over the stipulated time limit for correction.
In cases of delays in submission of root-cause analysis and correction action reports, a penalty of Rs 1 Lakh per hour. In cases of non-provision of on-site support, training material, onboarding or user manuals may result in penalties of Rs. 5,000 per hour.
Broader Issues regarding the OSM system
The scandal surrounding Coempt Edu Teck arises following issues related to the security features of the OSM system for marking of class 12 papers. The security features of the system came under fire after various individuals complained on social media websites, leading to the CBSE accepting the allegations of vulnerabilities and taking the required steps to address them.
It has further been announced by the board that these vulnerabilities have been rectified. Further examination is, however, continuing.
Student’s Protest
The ongoing controversy over the NEET-UG paper leak, the delayed CUET-UG exam and the OSM system of CBSE triggered a major protest by student organisations outside the Ministry of Education on Monday.
The protest was staged by the All India Students' Association (AISA) and joined by activists of Krantikari Yuva Sangathan (KYS), demanding accountability for repeated paper leaks and the resignation of Union Education Minister Dharmendra Pradhan.
The organisers said that the demonstration sought action over alleged irregularities in examinations such as NEET, CUET, SSC and CBSE.