Section 16 in Tamil Nadu Panchayats (Procedure for Conducting Public Auction of Leases and Sales in the Panchayats) Rules, 2001
16. Auction procedure.
(1)In the case of auction conducted by the Panchayat, a Committee comprising of three members for supervising the conduct of auction, of leases or sale may be constituted by the concerned Panchayat for ensuring greater transparency. In case of a Village Panchayat, such Committee may include besides the Executive Authority, the Vice-President and the members from the ward where the property to be leased or sold lies. The Executive Authority or the Commissioner or the Secretary, as the case may be, shall inform the Committee members in writing at least three days in advance for making themselves present at the place of auction or sale.(2)The Executive Authority or the Commissioner or the Secretary, as the case may be, or the person authorised to conduct the auction shall be present sixty minutes ahead of the time fixed for auction at the appointed place. If more number of items are to be auctioned, auction shall be conducted one after another. The highest bid amount shall be either recovered along with necessary security deposit or the first instalment of total bid are collected before commencing the next item of auction. The deposit of all unsuccessful bidders may be refunded to them on the spot or after all the auctions under the question are over with due acknowledgement.(3)No person shall be eligible to participate in the auction, if he was irregular in paying instalment amounts in respect of any previous auction held in that Panchayat or if he has failed to comply with any of the terms or conditions of a previous auction, resulting in the damage to the lease property.(4)A suitable upset price may be fixed at the commencement of auction which may be based on the last auction, the prevailing market prices and the prospect at the present auction. If the situation warrants, reasons for which shall be recorded in writing amount may be lowered to a further reasonable level from which the bid be increased by the bidders.(5)As soon as the auction is over, the security deposit amount and the lease amount released in full or in parts shall be remitted into the concerned Panchayat Fund Account and printed receipts issued to the payees by the Executive Authority or the Commissioner or the Secretary, as the case may be.
