Section 22(1) in Tamil Nadu Panchayats (Procedure for Conducting Public Auction of Leases and Sales in the Panchayats) Rules, 2001
(1)If the Panchayat considers and decides its advantageous to adopt the auction-cum-tender procedure, it shall have power to adopt such procedure in the sale of property or leasing out the right to enjoy property or to collect fees for the use of public places, if it has reason to believe that due to collusion among the intending bidders or due to threat by habitual participants to the new entrants in the bidding, either there is a low bid or no bid at all, at least on two occasions, it shall record the fact in the minutes of the meeting and opt for adopting auction-cum-tender procedure in respect of lease or sale of any item which it proposes to conduct.
