(a)Before the end of October of each year, the Sarpanch shall forward to the [Sub-Collector] [Substituted by S.R.O.No. 648/99 vide Orissa Gazette Extraordinary No. 1183, Dated, 16.8.1999.], through the Block Development Officer, a list of immovable properties whether directly managed by the Grama Panchayat or leased out, specifying the location of each such property, with income derived from each of such property during the last three years in Form No. 8. In case the Sarpanch fails to forward the list of immovable properties within the time-limit specified, the [Sub-Collector] [Substituted by S.R.O.No. 648/99 vide Orissa Gazette Extraordinary No. 1183, Dated, 16.8.1999.] shall call for necessary information from the Grama Panchayat concerned. After excluding the properties, which are leased out or to be leased out under Sub-rule (2) of Rule 86, and such other properties, which shall be decided by the [Sub-Collector] [Substituted by S.R.O.No. 648/99 vide Orissa Gazette Extraordinary No. 1183, Dated, 16.8.1999.] to be managed by Grama Panchayat directly, [other properties shall, subject to the decision of the Panchayat, be leased out] [Substituted by S.R.O.No. 648/99 vide Orissa Gazette Extraordinary No. 1183, Dated, 16.8.1999.] by public auction in the manner hereinafter prescribed.(b)If the [Sub-Collector] [Substituted by S.R.O.No. 648/99 vide Orissa Gazette Extraordinary No. 1183, Dated, 16.8.1999.], after hearing the Grama Panchayat and making such enquiry as he deems proper, finds either that the income derived from any property managed directly by it is inadequate or that there exist any other reasons to be recorded in writing for which the property should be leased, he shall direct that such property be leased out by public auction. In making his decision he may normally direct that any market and ferry shall be leased out by public auction and shall not be managed by Grama Panchayat directly, unless for any specific reason to be recorded in writing, he considers that direct management of a particular market or ferry is necessary in the interest of Grama Panchayat.(c)The [Sub-Collector] [Substituted by S.R.O.No. 648/99 vide Orissa Gazette Extraordinary No. 1183, Dated, 16.8.1999.] shall fix the period of lease and the minimum bid money, i.e., the upset price in respect of the property which is decided to be leased out taking into consideration the income from such property for the last three years. When information as to previous three years' income is not available or does not exist, the [Sub-Collector] [Substituted by S.R.O.No. 648/99 vide Orissa Gazette Extraordinary No. 1183, Dated, 16.8.1999.] shall fix the upset price taking the local conditions into consideration. The period of lease for properties which have seasonal value for effective operation, shall be fixed in such manner as the season is covered by the lease period.(d)The [Sub-Collector] [Substituted by S.R.O.No. 648/99 vide Orissa Gazette Extraordinary No. 1183, Dated, 16.8.1999.] shall send a list of properties, that are to be leased out by public auction indicating the period of lease and upset price, to the respective Block Development Officer who shall thereupon fix the dates for auction of all or any of such properties and issue notices for auction sale. He may authorise [the Panchayat Extension Officer] [Substituted by S.R.O.No. 648/99 vide Orissa Gazette Extraordinary No. 1183, Dated, 16.8.1999.] to conduct auction sale of properties whose upset price is [rupees five thousand or less] [Substituted by S.R.O.No. 648/99 vide Orissa Gazette Extraordinary No. 1183, Dated, 16.8.1999.]. The notice for auction shall be issued before fifteen clear days of the date fixed for auction and shall be published in the notice board of the Panchayat, Panchayat Samiti, Sub-division Office and at such other place or places as the Block Development Officer or [the Panchayat Extension Officer] [Substituted by S.R.O.No. 648/99 vide Orissa Gazette Extraordinary No. 1183, Dated, 16.8.1999.] as the case may be, deem necessary.(e)The auction shall be conducted by Block Development Officer or [the Panchayat Extension Officer] [Substituted by S.R.O.No. 648/99 vide Orissa Gazette Extraordinary No. 1183, Dated, 16.8.1999.] as the case may be, at the Headquarters of the Grama Panchayat or at the place where the property is situated and the bid shall be confirmed by the Block Development Officer, in case of the auction sale conducted by [the Panchayat Extension Officer] [Substituted by S.R.O.No. 648/99 vide Orissa Gazette Extraordinary No. 1183, Dated, 16.8.1999.] or by the [Sub-Collector] [Substituted by S.R.O.No. 648/99 vide Orissa Gazette Extraordinary No. 1183, Dated, 16.8.1999.], in case of auction sale conducted by the Block Development Officer.(f)No person shall be allowed to bid unless and until he deposits the security money and produces a certificate from the concerned Grama Panchayat to the effect that he has cleared all dues accruing to the Grama Panchayat in respect of any previous lease taken by him. The security deposit shall be 10 per cent of the upset price fixed by the [Sub-Collector] [Substituted by S.R.O.No. 648/99 vide Orissa Gazette Extraordinary No. 1183, Dated, 16.8.1999.]. The security money shall be paid to the officer conducting the auction sale who shall record the details in sale records.(g)The bid shall be knocked down in favour of the highest bidder. The security money of all the bidders except the highest bidder shall be refunded to them on proper receipt at the end of the auction. The security money of the highest bidder shall be credited to the Grama Fund of the concerned Grama Sasan and shall be adjusted against the last instalment of his bid money to be paid to the Grama Panchayat. On the failure of the highest bidder to execute the agreement in time or violation of any of the conditions of the agreement, the security deposit shall, so much of it as would be just sufficient to cover the loss on re-auction, be forfeited.(h)At the end of the bid, the officer conducting the auction shall send the records along with a report to the Block Development Officer or [Sub-Collector] [Substituted by S.R.O.No. 648/99 vide Orissa Gazette Extraordinary No. 1183, Dated, 16.8.1999.], as the case may be, for confirmation of the bid. The [Sub-Collector] [Substituted by S.R.O.No. 648/99 vide Orissa Gazette Extraordinary No. 1183, Dated, 16.8.1999.] or Block Development Officer, as the case may be, shall intimate his order of confirmation within thirty days from the date of auction. In case the [Sub-Collector] [Substituted by S.R.O.No. 648/99 vide Orissa Gazette Extraordinary No. 1183, Dated, 16.8.1999.] or Block Development Officer fails to communicate his order of confirmation within thirty days from the date of auction, the bid shall be deemed to have been confirmed :Provided that the [Sub-Collector] [Substituted by S.R.O.No. 648/99 vide Orissa Gazette Extraordinary No. 1183, Dated, 16.8.1999.] or the Block Development Officer, as the case may be, may, if the bid is inadequate or he receives a report that no bidders were forthcoming, direct that the property be either reauctioned or managed directly by the Grama Panchayat for a period to be specified by him.(i)If for any reason (which must be recorded In writing) the auction does not take place on the fixed date or the minimum bid in respect of any property is not reached in the auction, a fresh auction shall be held on a subsequent date to be fixed by the officer conducting the auction. The notice for such auction shall be published in the notice board of the Panchayat, Panchayat Samiti, Sub-division Office and such other place or places as the officer conducting the auction may deem necessary before fifteen clear days of the date fixed for the auction.(j)After receipt of the order of confirmation of the bid from the [Sub-Collector] [Substituted by S.R.O.No. 648/99 vide Orissa Gazette Extraordinary No. 1183, Dated, 16.8.1999.] or confirming the auction sale conducted by the junior officer, the Block Development Officer shall direct the successful bidder to deposit the first instalment of the bid money and execute the agreement in the appropriate form prescribed with the concerned Grama Panchayat within fifteen days from the date of receipt of the notice and shall forward a copy of the confirmation order to the Sarpanch. The agreement shall be registered and the cost of registration of such agreement shall be paid by the auction purchaser. If the auction purchaser fails to execute the agreement or deposit the first instalment within the said period, the Property shall be put to fresh auction by the Block Development Officer, or his junior officer, as the case may be. For fresh auction all formalities prescribed for original auction shall be followed.(k)The bid money shall be payable in advance in [two instalments] [Substituted by S.R.O.No. 648/99 vide Orissa Gazette Extraordinary No. 1183, Dated, 16.8.1999.]. The first instalment [which shall not be less than seventy-five per cent of the bid money] [Inserted by S.R.O.No. 648/99 vide Orissa Gazette Extraordinary No. 1183, Dated, 16.8.1999.] shall be paid before execution of the agreement and the subsequent instalments shall be paid in accordance with the agreement. The amount of each instalment and the period to which it relates shall be mentioned in the agreement. If any instalment is not paid by the due date the Secretary of the Grama Panchayat shall forthwith bring it to the notice of the Grama Panchayat who shall terminate the lease and move the Block Development Officer for re-auction. The Block Development Officer thereupon shall hold the re-auction within thirty days in the manner prescribed for auction under this rule.(l)Any loss of any kind to the Grama Sasan due to the breach of any condition of the agreement by the lessee shall be recovered from the lessee as per Section 102 of the Act.(m)The agreement for lease of market, ferries, pisciculture, tanks or orchards shall respectively be in Forms A, B, C and D. The agreement for all other properties shall be in Form 'E' of these rules which may be suitably modified, to meet the requirement of the particular property being leased out.(n)Any dispute arising between the lessor and the lessee in respect of the interpretation, conduct or performance of any terms and conditions of the agreement for lease of any property or with regard to any claim shall be referred to the Collector of the district whose decision in the matter shall be final and binding on the parties.(o)Any Grama Panchayat aggrieved by the order of the [Sub-Collector] [Substituted by S.R.O.No. 648/99 vide Orissa Gazette Extraordinary No. 1183, Dated, 16.8.1999.] under Rule 87 (b) may within fifteen days of the order appeal to the Collector, who may set aside or confirm the said order.(p)Any bidder aggrieved by the action of the officer conducting auction under these rules may within fifteen days of the order appeal to the [Sub-Collector] [Substituted by S.R.O.No. 648/99 vide Orissa Gazette Extraordinary No. 1183, Dated, 16.8.1999.] who may stay, set aside or confirm the said order.
