Section 6 in The M.P. Municipalities (Transfer of Immovable Property) Rules, 1996
6.
The auction or the offers, as the case may be, in addition to other conditions which the Council may think fit to impose shall be subject to the following conditions, namely :-(i)An amount of security deposit, as determined by the Council subject to the condition that such amount shall not be less than ten per cent of the estimated auction/offer price in cash or through Demand Draft, shall necessarily be deposited by bidders or the offerers as the case may be, before participating in the auction or giving sealed offers, otherwise no person shall be entitled to take part in the auction, similarly the offers without the said Security deposit shall not be entertained.(ii)The highest bid/offer shall be subject to sanction by the authorities as referred to in Section 109 of the Act.(iii)The authorities as referred to in condition (ii) above shall not be bound to sanction the highest bid/offer.(iv)The highest bidder or the highest offerer as the case may be, shall deposit 100% of the auction/offer price, within 30 days from the date of receipt of the notice of intimation that his bid/offer has been accepted by the authority as referred to in the condition number (ii) above. However, the amount of security deposit shall be adjusted in the said auction/offer price. If he fails to pay such amount within the said period, the security deposit shall be forfeited.(v)Leaving the security deposit of first 2 highest bidders/offerers, the Security deposit of all the remaining bidders/offerers shall be refunded immediately after the auction is over or the offers are opened, as the case may be.(vi)As soon as the full auction/offer price is received, the Security deposit of the remaining one bidder/offerer shall also be refunded.(vii)In case, bidder/offerer, whose bid/offer has been accepted, does not deposit the auction/offer price within the time prescribed as above, the authority as referred to in condition (ii), may accept the second highest bid/offer, and on intimation, such bidder/offerer also docs not deposit the auction/offer price within the prescribed time, the security deposit of such bidder/offerer shall also be forfeited.(viii)If the authority as referred in condition (ii), is of the opinion that instead of accepting the second highest bid/offer, re-auction or re-inviting the offers is necessary, then the Security deposit of such second bidder/offerer shall be refunded and auction to re-auction or re-inviting the scaled offers shall be taken.
