Section 374(11) in Rules under the United Provinces Excise Act, 1910
(11)Each licence should ordinarily be put up to separate competition.As a rule bids should not be taken in amounts smaller than multiples of Rs. 50 to Rs. 100; in multiples of Rs. 10 from Rs. 100 to 300; in multiples of Rs. 25 from Rs. 300 to Rs. 500; in multiples of Rs. 50 from Rs. 500 to Rs. 1,000 and in multiples of Rs. 100 from Rs. 1,000 to Rs. 2,000. All bids above Rs. 2,000 should be in even sums of Rs. 200. Where no reason to the contrary exists, the highest bid, if adequate, should be accepted. But this provision is subject to two important considerations. Firstly, care should be taken to exclude bids obviously in excess of fair market-value of the licence or farm or which are the result of speculation or rivalry. The acceptance of such bids, even if the bidders fulfil their engagements, is immediately injurious to the interest of the consumer, and ultimately to the excise revenue. This precaution is particularly necessary in the case of farming contracts which are worked by means of sub-settlement made by the farmer. Secondly, it is necessary to guard against the acceptance of bids which may have the effect of consisting an overt or covert monopoly, and against the acceptance as licence-holders of undesirable person or persons of doubtful solvency. No person whose name appears ,upon the district or State defaulter's list should be allowed to bid.
