Section 16 in The U.P. Excise Licences (Tender-Cum-Auction) Rules, 1991
16. Auction procedure.
(1)The auction shall be held at the headquarters of the district and shall be presided over by the Licensing Authority. In case the Licensing Authority for unavoidable reasons cannot personally preside over the auction, he may authorise an officer of the rank of Additional Collector or an officer of the Excise Department not below the rank of an Assistant Excise Commissioner to preside over the same. The auction proceedings conducted by the officer shall be sent to the Licensing Authority for consideration.(2)The auction proceedings shall be attended by the Excise Inspectors on Preventive Duty and by Tahsildars who will assist the Officer conducting the auction in securing adequate bids and in laminating bidders of unsatisfactory character or doubtful solvency.(3)The officer conducting the auction may withdraw any licence or licence from the auction before the auction is commenced under instructions of the Excise Commissioner alongwith reasons for such action.(4)As a rule bids should not be taken in amounts smaller than multiples of Rs. 100 upto Rs. 10,000 and all bids above ten thousand rupees should be in multiples of Rs. 1,000.(5)Following precautions need to be observed while deciding the bids :(i)Care should be taken in respect of bids obviously in excess of fair market value of the licence or which are the result of speculation or ulterior motive, the acceptance of such bids as may be injurious to the interests of the consumers and ultimately to the excise revenue.(ii)It is necessary to guard against the acceptance of bids which may have the effect of constituting an overt or covert monopoly and against the acceptance as licence holders of undesirable persons of doubtful solvency or criminal background.(6)(a)The officer conducting the auction shall record the name of each person making a bid and the amounts of his bids.(b)The signature of the highest bidder and the next two lower bidders shall be taken on the bid sheet.(c)At the time of auction the persons accepted as auction purchaser shall be required to sign his name or affix his thumb-impression against the relevant entry of the licence in Form G-14-A. It shall be explained at that time the deposit paid in advance will be returned in the event of the licence being subsequently refused. The final bid accepted shall invariably be recorded in words with his own hand by the officer conducting the auction.
