- (i) The settlement proposal shall contain the minimum reserved fees, at which licences are to be put up to auction. In proposing the minimum reserved fees, the Deputy Commissioner shall have regard to the fees paid for each licence at the three preceding annual auctions, the quantity and retail prices of the intoxicants sold during the current and preceding years, and the estimates of profit made or loss sustained in working the shop during the current year, as framed by the inspecting officers. The reserved prices should be so fixed that each shop can be worked separately at a reasonable profit a margin being added for competition.(ii)Maximum vend fees. - In addition to a reserved minimum fee for each shop the settlement proposals shall also contain, in case of shops to be settled on the vend fee per litre system, the proposed maximum vend fees. These shall be calculated so as to allow a small margin of profit per L.P. litre on the estimated consumption after shop and other expenses have been deducted. The list of such reserved minimum and maximum fees shall, if so directed by the Excise Commissioner, be kept confidential. A shop shall not ordinarily be settled above the maximum vend fee as finally sanctioned by the Excise Commissioner.(iii)Shop not to be ordinarily settled below minimum reserved fees. - A shop shall not ordinarily be settled below the minimum reserved fee. When for special reasons, the Deputy Commissioner considers that a shop should be settled below the minimum reserved fee, he shall, when applying for the sanction of Excise Commissioner to the settlement, state in full his reasons for making the recommendation.
