Section 7(ii) in Andhra Pradesh Forest Contract (Disposal of Forest Produce) Rules, 1977
(ii)Every intending bidder shall deposit cash solvency and or produce a valid solvency certificate duly hypothecated in favour of concerned Divisional Forest Officer in Form I; or produce a bank guarantee in Form I A. Such solvency certificate shall not be valid if it is older than six months (by virtue of the date of issue) as on the date of sale. The amount of solvency shall be atleast upto one third of the proposed bid and such cash solvency or solvency certificate or bank guarantee shall be returned on conclusion of the sale if the bid is not knocked down :
