Section 20 in The U.P. Excise Licences (Tender-Cum-Auction) Rules, 1991
20. [ Licence security. [Substituted by Notification No. 9862/X-97-B-Licence-96-97, dated 1st March, 1996, published in U.P. Gazette, Part 1, Section (Kha), dated 9th March, 1996.]
(1)In case the Licensing Authority has accepted the highest bid which shall include basic licence fee in the case of Bhang and country liquor, advance security shall be paid by the highest bidder for the due performance of the contract in the following manner :(i)A sum equal to one-twelfth of the highest bid (which shall include basic licence fee in the case of Bhang and country liquor) shall be paid in cash or by Bank Draft as first instalment immediately on the fall of hammer. In case a bidder has already furnished some cash or Bank Draft under the proviso to clause (b) of Rule 10, such amount shall be adjusted towards the security; and(ii)The auction purchaser may either deposit a sum equal to one-eighth of the highest bid (which shall include the basic licence fee in the case of Bhang and country liquor) in cash or by Bank Draft as a second instalment within twenty days of the auction or he may deposit one-twelfth of the highest bid (which shall include basic licence fee in the case of Bhang and country liquor) in cash or by Bank Draft within 10 days of the auction and one-twenty fourth of the highest bid (which shall include basic licence fee in the case of Bhang and country liquor) within twenty days of the auction in the following manner :(a)in cash or by Bank Draft; or(b)in the form of fixed deposit receipt obtained from a Scheduled Bank for the period of the licence duly pledged to licensing authority for a sum equal to one-twelfth of the highest bid (which shall include basic licence fee in the case of Bhang and Country liquor); or(c)in the form of Bank Guarantee for a sum equal to one-twelfth of the highest bid (which shall include basic licence fee in the case of Bhang and Country liquor) issued from a Scheduled Bank and valid till the final settlement of all the claims and dues to the State Government in respect of the auctioned shops or group of shops. In case a bidder has already furnished Bank Guarantee under the proviso to clause (b) of rule 10, the same may be adjusted towards the bank guarantee required under this clause; or(d)partly in cash, partly by Bank Draft, partly in the form of Fixed Deposit receipt obtained from a Scheduled Bank for a period of the licence duly pledged to the licensing authority or/and partly in the form of Bank Guarantee issued from a Scheduled Bank and valid till the final settlements of all claims and dues to the State Government in respect of the auction shop or group of shops. In this sub-clause, the part deposit by fixed deposit receipt or/ and Bank Guarantee shall for a sum equal to double of the amount which remains after making part deposit in cash or by Bank Draft. In case, a bidder has already furnished bank guarantee under the proviso to clause (b) of rule 10, the same may be adjusted towards the Bank Guarantee required under this sub-clause.(iii)In case the bidder has furnished some cash or Bank Draft or Bank Guarantee under the proviso to clause (b) of Rule 10, and the same has been adjusted towards the security under clause (i) and clause (ii) above, such bidder shall furnish solvency certificate or fresh Bank Guarantee for the amount required under Rule 10 before the commencement of the licence for running the shop or group of shops or within fifteen days of auction, whichever is earlier, before the licensing authority of the concerned district. The Excise Commissioner or the Deputy Excise Commissioner of the charge duly authorised by the Excise Commissioner in his behalf may under very special circumstances to be recorded in writing grant further time, for furnishing solvency certificate or fresh Bank Guarantee under this sub-clause, for such a specific period as he may think necessary.(2)If the Licensing Authority decides to recommend the second highest bid for sanction to the Excise Commissioner, such second highest bidder shall also be required to deposit the security amount as required in sub-rule (1).]
