- Unless otherwise prescribed, the Government shall, by order direct, whether licences in any form may be granted on fixed fee, or on a fee to be fixed by auction or tender in any year. The following procedure is prescribed for the grant of a licence by auction -(1)The Excise Commissioner shall give at least ten dg s' notice of the date and place of the auction. This notice shall also specify -(a)the conditions to which the auction shall be subject;(b(b) the number and situation of the shops to be licensed on the basis of auction, where applicable;(c)the occasions, if any, on which the shops are likely to be closed; and(d)any other information which, in the opinion of the Excise Commissioner may be of use to intending bidders.(2)The auction shall be held by the Deputy Commissioner or by such other gazetted officer, who shall be called the "Presiding Officer', as may be empowered in its behalf by the Government.(3)Before the auction begins, the Presiding Officer shall read out the general conditions governing the auction and satisfy himself that the intending bidders have understood them.(4)No person shall be allowed to bid for a licence unless -(a)he has furnished a written statement and declaration;(b)he has furnished the following documents: -(i)documentary evidence to the satisfaction of the Presiding Officer that he is the bona fide representative of a distillery, brewery, winery or bottling plant which is not black listed in Delhi for the time being.(ii)an attested photostat copy of the registered partnership deed or memorandum and articles of association, as the case may be, of the distillery, brewery, winery or bottling plant referred to in sub-clause (i);(iii)a sealed cover containing a statement of wholesale prices at which each bottle of Indian Liquor and Country Liquor of each brand and size is proposed to be sold by the intending bidder during the currency of the licence;(iv)if the intending bidder is a sole proprietor, partnership firm, limited liability partnership firm, a private limited company or a society and did not hold a licence in Form L-1, or L-3 during the previous licensing period a certificate of solvency to the extent of rupees one lac or as specified by the Excise Commissioner, signed by a magistrate not below the rank of a Sub-Divisional Magistrate, having jurisdiction over the place where the intending bidder resides or the firm, company or society has its registered head office;(v)a clearance certificate issued by the Income Tax Officer who assessed the intending bidder;(vi)a no-dues certificate from the Deputy Commissioner in respect of dues realizable from the intending bidder up to the last date of the month preceding the date of auction, unless the intending bidder has specially been exempted from this requirement by the Government;(vii)a no-dues certificate from the appropriate assessing authority if the intending bidder is or is interested in the business of a dealer, registered under the Delhi Value Added Tax Act, 2004 in respect of dues realizable under the Delhi Value Added Tax Act, 2004 up to the last date of the period preceding the date of auction for which such dealer has been assessed.(c)he is allowed after scrutiny of his statement, declaration and documents by the Presiding Officer, to enter the bidding area which the Presiding Officer shall specify for intending bidders to assemble.(5)(a)No person other than a Government servant on duty shall enter the bidding area, unless he is allowed entry by the Presiding Officer;(b)only one person intending to bid on behalf of any person or firm shall be allowed to enter the bidding area.(6)(a)The Presiding Officer shall put up each licence separately to auction after announcing its locality where necessary, and any other information that, in his judgment, is necessary to identify the licensee;(b)the bids shall be made for the whole annual licence fee for the licence;(c)the Presiding Officer shall cause the name of each person making the bid and the amount of the bid to be recorded and shall record the final bid accepted by him in his own hand;(d)the Presiding Officer may refuse to record any bid if he has reason to believe that it has been made in the interest of any person who has not been allowed entry into the area marked for the assembly of intending bidders;(e)the Presiding Officer may refuse to record any bid which he considers to be merely speculative or not made in good faith;(f)if the Presiding Officer is of the opinion that the speculative or mala fide bidding is going on, he may, without prejudice to his power under clause (e), require an immediate deposit of the whole amount of bid. If such an order has been passed and announced to the assembly of bidders, all subsequent bids for the said licence shall be made subject to the condition that the whole amount of bid shall be immediately deposited on acceptance;(g)all bids shall be in multiples of rupees one thousand;(h)subject to the provisions of clause (f) above, the highest bidder shall pay a sum not less than twenty-five per cent. of the bid money in cash or by bank draft immediately on the conclusion of the auction;(i)the person accepted as the auction purchaser shall sign his name or affix his thumb mark to the record of auction;(j)the highest bidder shall also furnish a personal bond with a surety bond as specified in the terms and conditions of auction.(7)The Excise Commissioner shall, on receipt of the report of the Presiding Officer, forward it to the Government with a report showing, if need be, the locality for each licence auctioned and stating any other information that he may consider relevant.(8)The Government may -(a)accept the highest bid;(b)reject the highest bid and accept any other bid;(c)reject all or any of the bids on the ground that the highest bid is not adequate or for any other reason;(d)where all the bids are rejected under clause (c) or where there were no bids, in its discretion, order a re-auction or direct that the licence may not be granted or may be granted by any other mode of fixing fee.(9)A person whose bid is accepted under sub-rule (8) shall pay a sum not less than twenty-five per cent. of the fee prior to the grant of licence and shall pay the remainder of the fee in nine equal monthly instalments on or before the 7th of every month beginning from the second month of the currency of the licence:Provided that any sum deposited by a successful bidder under clauses (f), (g) or (h) of sub-rule (6), shall be adjusted towards the first and, if need be, subsequent instalments of the licence fee.(10)A person whose bid is accepted, shall take all requisite actions to complete all formalities required for grant of a licence within thirty days from the date of communication of acceptance of his bid and if he does not do so, all deposits made by him shall stand forfeited to the Government, and if the licence is re-auctioned, he shall not be entitled to any compensation.
