Section 23 in Orissa Government Vehicles (Control and Use) Rules, 1978
23.
The procedure for condemnation and disposal of condemned vehicles, shall be as follows :(i)Proposals for condemnation shall be supported by recommendation of the Motor Vehicle Inspector certifying that the vehicle is not fit for economic repairs. The criteria for determination of economic repairs shall be the same as under Rule 21.(ii)The authority competent to order condemnation under Rule 22, shall on the basis of the recommendation of the Motor Vehicle Inspector determine the minimum price at which the vehicle can be disposed of by public auction.(iii)The auction shall given publicity in the manner prescribed under the Orissa General Financial Rules.(iv)The auction shall be conducted by an officer not below Class-II level authorised by the competent authority in that behalf. The conducting officer shall record the proceedings of the auction in his own hand.(v)The competitors shall be required to pay earnest money deposit amounting to Rs. 1,000 (Rupees one thousand) in terms of cash in public auction and in shape of Bank draft in case of sealed tenders which shall be subject to refund immediately except in case of the highest offer accepted by competent authority.(vi)Bids at or above the price fixed by the competent authority shall be confirmed by the conducting authority. The highest bidder shall deposit 25 per cent of the bid amount immediately after the bid and the rest within 7 days from the date of confirmation of the bid. Bids below that price shall be referred to competent authority.(vii)For cases where the auction does not fetch the minimum price fixed, the authority competent shall call for sealed tenders. Offers received within 15 days from the date of announcement shall be opened and considered in the presence of tenderer or their authorised agents. The highest offer at or above the minimum price shall be approved by the competent authority then and there. The highest tenderer shall deposit 25 per cent of the offered amount immediately after the announcement and the rest within 7 days of the approval of the offer.(viii)If minimum price is not available either through auction or sealed tender the competent authority may dispose of the vehicle through negotiation so as to obtain the minimum price failing which the vehicle may be disposed of at a price not less than the highest price offered by the highest bidder or tenderer.(ix)On failure to make payment, as aforesaid, the deposits (including earnest money) shall be forfeited and the vehicle put to fresh auction or tender as the case may be.(x)The vehicle shall not be delivered to the bidder/tenderer until after full payment and compliance with the requisite formalities. Tools, implements and spare parts shall not be delivered with the vehicle.(xi)Sale-proceeds shall be deposited in the Treasury under the appropriate head of account as soon as practicable.(xii)The bidders/tenderers shall remove the vehicle from the site within 7 days from the date of depositing the full amount of bid/tendered money. Custody and safeguard of the vehicle shall be the responsibility of the bidder/ tenderer and no claim or complaint on that account shall be admissible.(xiii)On failure to remove the vehicle within the time, as aforesaid, ground rent at the rate of one per cent of the bid/tendered money shall be charged for each day or part of the day till the removal of the vehicle, from the site.(xiv)Where the ground rent, so charged, exceeds the sale price deposited, the bidder/tenderer shall cease to have any right on the vehicle. The amount deposited by him shall be adjusted towards the ground rent and the vehicle shall became absolute property of Government free from encumbrances and disposed of by fresh auction or tender as the case may be.
