Section 23(7) in Tamil Nadu Panchayats (Procedure for Conducting Public Auction of Leases and Sales in the Panchayats) Rules, 2001
(7)The Panchayat is competent to renew the lease of the property only for a period of three years to an existing lessee and shall not renew for the second time, even if the lessee is willing to pay higher rent. The Executive Authority or the Commissioner or the Secretary, as the case may be, shall put on such lease of property on auction after the sixth year when the existing lessee will be free to compete in auction and knock out the lease at any amount as he may desire.
