Section 18 in Tamil Nadu Panchayats (Procedure for Conducting Public Auction of Leases and Sales in the Panchayats) Rules, 2001
18. Circumstances and procedure to conduct re-auction.
(1)Re-auction of lease may be conducted in the following circumstances: -(a)When the lease was cancelled due to violation of lease condition by the lessee;(b)When another person comes forward to bid for higher amount by remitting an amount higher, by one and a half times more than the bid amount;(c)When the Inspector or any other authority empowered by him cancel the auction on account of proven irregularities committed in the auction held already; and(d)When the Panchayat itself resolves to conduct re-auction on the ground that the bid amount is too low to be considered as a reasonable bid, compared to the last auction or taking into consideration of the prevailing circumstances.(2)In the event of re-auction, the procedure laid down for conducting auction in these rules shall be observed all over again, starting from the issue of re-auction notice onwards. Before commencing re-auction proceedings, a written order cancelling the previous auction, shall be issued by the Executive Authority or the Commissioner or the Secretary, as the case may be, based on the resolution of the Panchayat or the orders of the Inspector.(3)The Executive Authority or the Commissioner or the Secretary, as the case may be, shall be competent to cancel an auction in the event of a situation specified in clause (b) in sub-rule (1) and issue orders before seeking permission of the Panchayat for conducting a re-auction.(4)When re-auction is ordered, the publication of a notice in the District Gazette and the newspapers may be dispensed with if the Executive Authority or the Commissioner or the Secretary, as the case may be, considers that the bid amount at the re-auction may not be at a level warranting such publication and accordingly notice for shorter duration may be given.
