Section 20 in Tamil Nadu Panchayats (Procedure for Conducting Public Auction of Leases and Sales in the Panchayats) Rules, 2001
20. Execution of lease deed.
(1)Soon after the approval of the auction of a lease by the Panchayat, the Executive Authority or the Commissioner or the Secretary, as the case may be, shall confirm the auction in writing to the successful bidder. If the lease amount exceeds Rs. 10,000 (Rupees ten thousand only), the bidder shall be directed to execute a lease deed within five days of the confirmation of the auction in a stamped paper of suitable value and register it. If the bidder fails to execute the lease deed, the auction shall be cancelled forfeiting the security deposit and the initial amount paid on the day of auction and also the re-auction of lease shall be ordered. The successful bidder shall not enter into the lease property before executing lease deed and obtaining permission for such entry from the Executive Authority or the Commissioner or the Secretary, as the case may be.(2)The lease deed shall specify the terms and conditions, inter alia, the following matters, in addition to the other conditions specified in the auction notice: -(a)duration of the lease;(b)amount of each instalment of the lease amount and the due date before which it is payable;(c)lease liable for cancellation in case the instalment of the lease amount is not paid within seven days on the expiry of the due date or such larger period or as the Executive Authority or the Commissioner or the Secretary, as the case may be, may fix and not exceeding thirty days from the due date, at any rate;(d)liability of the lessee to make good, the loss, if any, caused to the Panchayat on re-auction, departmental management of the property or right of re-auction, owing to the default on the part of the lessee to fulfil the terms of his contract;(e)the rate of fees leviable by the lessee in respect of public markets, landing places, halting places, cart-stands, slaughter houses, fisheries and ferries under the control of the Panchayat;(f)restrictions and controls to be imposed for preventing damages to the lease property in any way as would affect the revenue yielding capacity of the property and should it happen, the lessee shall restore the property to its original position or state, failing which the damage shall be restored at his cost which shall be recoverable from him besides cancellation of the lease;(g)prohibition against indiscriminate cutting of any branch of a tree or palmy rah or coconut leaves for a better yield;(h)liability of the lessee to pay assessment, ground-rent, peshkash or quit-rent at such rate as the Inspector may fix, from time to time;(i)right to enjoy the lease is subject to the satisfactory compliance with all the terms and conditions in the auction notice, as well as that of the lease deed; and(j)any other conditions or terms which may be found necessary in the case of a different type or particular kind of lease.(3)The lease deed shall be executed in the prescribed form depending upon the property leased out for enjoyment or right of collecting fees for using public places belonging to or vested with or regulated by the Panchayat.(4)No person shall be allowed to exercise his right under the lease until he has executed the lease deed.(5)In case any lessee fails to pay the instalment of the lease amount, as agreed upon within thirty days of due date of payment, the Executive Authority or the Commissioner or the Secretary, as the case may be, shall forthwith report the matter to the concerned Panchayat which shall have power to terminate the lease and order its management departmentally at the risk of the lessee till it is leased out in re-auction.(6)No sale deed is necessary in the case of sale of articles and for which the sale amount has been realised in full, but when confirming the auction for sale, the Executive Authority or the Commissioner or the Secretary, as the case may be, shall specify the date before which the property sold may be removed from the spot or taken possession of any balance amount due from the bidder shall be collected with due sales tax and surcharge, if any, before permitting the removal of the property from the spot or taking possession of the property.
