Section 7 in Nagpur Improvement Trust Land Disposal Rules, 1983
7. Premium at disposal of land by public auction of tenders.
(1)Where it is proposed to dispose of any land by public auction or by inviting tenders, the premium for grant of such lands shall be determined on the basis of highest bid received in the auction or tender subject to fixation of the upset price which shall not be less than the cost incurred on account of acquisition and development of such land. If no fair bid is forthcoming, or for any other valid reasons to be recorded in writing, the Chairman or the officers duly authorised by the Chairman may withdraw the land from auction or cancel the tender and put it up for auction of tender on a future date.(2)In case of disposal of land on predetermined premium, the premium shall be fixed by the Committee consisting of -(a)the Chairman, Nagpur Improvement Trust;(b)the Collector of Nagpur District, Nagpur and,(c)the Deputy Director of Town Planning, Nagpur Division, Nagpur.(3)For determining the premium, the Committee shall take into account sale of similar or similarly situated land in the vicinity during the year immediately preceding the fixation of premium. If no transactions have taken place during that year, the sale in other similar locations may be taken into consideration. The rate of premium shall not be less than the cost incurred on account of acquisition and development of the land.
