Section 3A(3) in Andhra Pradesh Municipalities (Advertisement Tax) Rules, 1967
(3)The regulation for the lease shall be as follows(a)the lease shall be through public auction or as the lease may be by calling tenders for the same;(b)the advertising agents who have been registered under rule 19 of the rules alone shall be entitled to participate in the bid;(c)the period of lease shall not exceed three years;(d)the permissible size of the hoardings shall be as provided in Rule 11(2);(e)the lessee is empowered to collect the fees on the advertisements; as provided in the Schedule annexed to the rules;(f)the bidder shall deposit such amount as may be specified by the Municipal Commissioner before participating the auction;(g)the bidder shall produce a solvency certificate for such amount as may be specified by the Municipal Commissioner either from an Officer of Revenue Department or the Commissioner of the Municipality;(h)the lease shall be approved by the Municipal Council;(i)the lessee shall within one week from the date of confirmation of the lease in his favour shall pay ⅓rd of the lease amount as deposit;(j)he shall pay the lease amount once in six months and such amounts may be paid in the months of April and October of each year. The initial deposit amount paid by the lessee shall be adjusted towards the lease amount for the third year;(k)in the case of belated payment, penal interest at the rate of 2% per month shall be levied;(l)in the case where the lessee fail to pay the lease amount, the Municipal Commissioner may re-auction the right to collect fee, on the hoarding for the remaining period and in addition he may recover the loss if any sustained thereby from the Original lessee.(m)the lessee shall enter into an agreement and it shall be registered, and(n)the lessee is responsible for the payment of rents if any to the owners on the hoardings erected on the Private site.
