Section 23(5) in Tamil Nadu Panchayats (Procedure for Conducting Public Auction of Leases and Sales in the Panchayats) Rules, 2001
(5)The Panchayat shall be at liberty to accept the offer of the lessee and fix up the rent for each of the next three years at a progressive rate of increase so as to derive not less than forty-five per cent of the total amount for the next term of three years, over the previous term of lease. If the Panchayat decides not to accept the request of the lessee, the Executive Authority or the Commissioner or the Secretary, as the case may be, shall take further action to conduct auction of the lease for that particular item of lease in the usual manner, by observing the procedures prescribed under these rules.
