Section 17 in Tamil Nadu Panchayats (Procedure for Conducting Public Auction of Leases and Sales in the Panchayats) Rules, 2001
17. Procedure for lease cancellation in the middle of lease period.
(1)If it is found that a lessee has violated any of the lease conditions, which is considered by the Panchayat as a serious irregularity like failure to remit the instalment of the dues on or before the due date or cause serious damages to the leased property and failed to restore the damages to the original position, the Executive Authority or the Commissioner or the Secretary, as the case may be, shall issue a show cause notice to the lessee as to why the lease should not be terminated on account of the violation of lease conditions which shall be specified in the show cause notice and require him to submit his reply within seven days. This notice shall be served on him as per the provisions of the Tamil Nadu Panchayats (Manner of Publication of Notification or Notice and Manner of Service of Documents to the Public) Rules, 2000.(2)After the expiry of the period specified in the show cause notice, the Executive Authority or the Commissioner or the Secretary, as the case may be, shall decide on the merit of the case after taking into consideration the explanation of the lessee, if any, received and after obtaining the resolution of the Panchayat for termination of lease, issue suitable orders to the lessee. If the lease is terminated, such order shall also be served on the lessee as per the provisions of the Tamil Nadu Panchayats (Manner of Publication of Notification or Notice and Manner of Service of Documents to the Public) Rules, 2000. The orders of termination shall include the consequences of termination in accordance with the conditions of lease deed, the important among them, being that the lessee shall be liable to pay any loss to the Panchayat arising out of the termination of lease and re-auctioning or by departmental management of the lease property or right.
