Section 22 in Tamil Nadu Panchayats (Procedure for Conducting Public Auction of Leases and Sales in the Panchayats) Rules, 2001
22. Auction-cum-tender procedure.
(1)If the Panchayat considers and decides its advantageous to adopt the auction-cum-tender procedure, it shall have power to adopt such procedure in the sale of property or leasing out the right to enjoy property or to collect fees for the use of public places, if it has reason to believe that due to collusion among the intending bidders or due to threat by habitual participants to the new entrants in the bidding, either there is a low bid or no bid at all, at least on two occasions, it shall record the fact in the minutes of the meeting and opt for adopting auction-cum-tender procedure in respect of lease or sale of any item which it proposes to conduct.(2)When the Panchayat decides to adopt the auction-cum-tender procedure, the Executive Authority or the Commissioner or the Secretary, as the case may be, shall issue auction-cum-tender notice with appropriate terms and conditions covering the salient formalities and legal aspects of each of the system in the same notice fixing a suitable time for conducting the auction and some other time on the same day following the completion of auction proceedings, for opening the tenders for the same items of leases or sales. Under any circumstances, the time appointed for the receipt of tenders shall not exceed the time appointed for the conduct of auction and any tender, received after the commencement of the auction shall be straightaway rejected without opening. Security deposits shall be specified separately for auction and tender. The time, place and the last day for the receipt of tenders and the time, place and last day for the sale of tenders documents and payment of tenders deposits, shall also be specified in the notice. A Tenderer can send his tender by registered post sufficiently in advance so as to reach the office of the tenderee before the appointed date and time and the official who receives the postal cover up to the time on the last day fixed for the receipt of tenders shall deposit it into the tender box prepared and kept for that purpose.(3)On the day and time fixed for the conduct of auction, strictly observing all the formalities and subject to the terms and conditions mentioned to take action under current notice, the Executive Authority or the Commissioner or the Secretary, as the case may be, shall commence the auction proceedings, conduct and complete the auction or sale of each item one by one and simultaneously completing the records of auction or sale and obtain necessary initial amount from the successful bidders at the time appointed for the opening of the tenders. The tenders received up to the prescribed time and date shall be opened and the amount quoted therein in respect of each item shall be read openly at the meeting of bidders and tenderers. The tender details may be entered in the register of tenders maintained for that purpose. After completing all the formalities, the Executive Authority or the Commissioner or the Secretary, as the case may be, shall place before the concerned Panchayat, the records of auction and of tenders for approval. The Panchayat shall have power, either to decide the higher bid in an auction or quoted in tender or any suitable bid or tender amount which is next to the highest amount. In case, it accepts a lower amount than the highest tender or the auction amount, the reasons for the same shall be specifically recorded in the minutes of the meeting.
