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State of Jammu-Kashmir - Section

Section 59 in Jammu and Kashmir Panchayati Raj Rules, 1996

59. Mode of contract.

(1)The Panchayat shall be responsible to get the contract auctioned at highest possible amount by all its means.
(2)The auction shall be concluded by Sarpanch or Naib-Sarpanch, Secretary and other three or more Panches authorised by the Panchayat and while closing the bid all such record their signatures on the bid sheet which should also invariably bear the signatures of the bidders. After the close of the bid the Panchayat shall announce by beat of drums and issue a notice indicating that the bid can be reopened within ten days of the close of the bid ; provided the bid is increased by 10% more in each case of the respective previous bid and display the same at least 5 conspicuous places in its area.
(3)No auction of the Panchayat shall be sanctioned in favour of the Panch, Secretary, Officer Servant of the Panchayat or other public servant.
(4)When the bid is closed under sub-rule (3) above it can in no case be reopened unless the closed bid is increased by an amount not less than 10% in each case or the respective previous highest bid and after the fresh bidder or bidders also deposit 10% and 25% of their respective bid/ bids with the panchayat in lieu of the security and first instalment of the auctioned respectively on the very day of his/their bid/bids :Provided no increase shall be allowed beyond 10 days of the date of closing the bid under sub-rule (2) above :Provided further that every such contract or auction in respect of a sum involving a value detailed below should be undertaken by the Panchayat after obtaining previous approval of the authority as shown against each :–
S.No. Amount Authority
1 2 3
1. Up to Rs. 5,000/- Sarpanch who shall report the matter to the Panchayat in thenext meeting.
2. Exceeding Rs. 5,000/- up to 10,000/- Panchayat by a formal resolution.
3. Exceeding Rs. 10,000/- up to Rs. 25,000/- Chairman of Block Development Council with the approval of theBlock Development Council.
4. Exceeding Rs. 25,000/- up to Rs. 1,00,000/- District Planning and Development Board.
5. Rs. 1,00,000/- and above Administrative Department with the recommendations of theDirector Rural Development.