Performance Guarantee Release Delayed: What to Do Next

Reviewed on: 2026-05-30.

If performance guarantee release delayed, collect the account, application, transaction, policy, property, employee, pension, scholarship or bill reference and send one precise written complaint to the office that can correct the record or release the money. Ask for a written reason if the request is refused or kept pending. Escalate with the same evidence bundle to dealing assistant, drawing and disbursing officer, treasury, procurement officer and RTI route. Use RTI only for records held by a public authority: file movement, deficiency notes, dispatch records, sanction details, payment advice, inspection reports or reasons recorded on file.

Use the correct external forum. Use GeM or the other official source linked below where it fits the subject. For consumer-service disputes, consider National Consumer Helpline and e-Daakhil. For public departments, CPGRAMS, state grievance portals and RTI may help. For high-value or time-sensitive cases, take professional advice before limitation expires.

• GeM
• Central Public Procurement Portal
• MSME Samadhaan
• RTI Online

• /practical-guides/
• /practical-guides/category/government-payments/
• /practical-guides/fixed-deposit-lien-not-removed-after-settlement/
• /practical-guides/hospital-refuses-medical-records-reasonable-time/
• /practical-guides/life-insurance-maturity-payment-delayed/
• /practical-guides/employer-not-giving-salary-slip/

1. Step 1: What to do when performance guarantee release is delayed? (a) Performance guarantee (PG): (i) contractor submits PG — bank guarantee or security deposit, (ii) PG release: after contract completion — department releases, (iii) delay: department doesn't release PG — after completion, (b) key rules: (i) GFR 2017: PG release — within 30 days of completion, (ii) contract terms: PG release timeline — as per contract, (iii) interest: if delayed — as per contract/GFR, © common scenarios: (i) PG not released — after completion, (ii) partial release — some amount retained, (iii) PG extended — without consent, (iv) PG invoked — without valid reason, (v) bank guarantee renewal cost — contractor bears, (d) rights: (i) contractor has right to PG release — after completion, (ii) right to interest — if delayed, (iii) right to RTI — for status, (e) authority: Department + Head of Department + Govt, (f) law: GFR 2017 + Contract Act + RTI Act 2005.

1. Step 2: Comparison table — PG release scenarios. (a) Not released: (i) issue: PG not released after completion, (ii) remedy: demand + RTI + legal notice, (iii) timeline: 30-60 days, (iv) example: not released; demanded; released, (b) Partial: (i) issue: partial release — some retained, (ii) remedy: demand full + reason, (iii) timeline: 30 days, (iv) example: partial; demanded; full released, © Extended: (i) issue: PG extended without consent, (ii) remedy: legal notice + dispute, (iii) timeline: 30-60 days, (iv) example: extended; disputed; released, (d) Invoked: (i) issue: PG invoked without valid reason, (ii) remedy: injunction + legal action, (iii) timeline: immediate, (iv) example: invoked; injuncted; recovered, (e) Renewal cost: (i) issue: contractor bears renewal cost for delay, (ii) remedy: demand reimbursement, (iii) timeline: 30 days, (iv) example: bore cost; demanded; reimbursed. (Note: GFR 30-day release. RTI for status. Legal notice if delayed.)

1. Step 3: How to get PG released. (a) Step 1: Demand release — in writing, (b) Step 2: RTI for status — very effective, © Step 3: Legal notice — if not released, (d) Step 4: Injunction — if PG invoked, (e) Step 5: Claim interest + renewal cost, (f) Step 6: Keep contract + completion certificate + correspondence.

1. Step 5: Practical tips. (a) demand PG release in writing — after completion, (b) GFR 30-day timeline — interest if delayed, © RTI for status — very effective, (d) injunction if PG invoked — immediate court action, (e) Example: A contractor's PG was not released for 6 months after completion; filed RTI + legal notice; released in 30 days with interest.

1. Step 6: Key provisions. (a) GFR 2017, (b) 30-day release, © Interest on delay, (d) Injunction for invocation, (e) RTI Act 2005.

See PG Release and Invoice Objection and How to File RTI.