Section 23(1) in Tamil Nadu Panchayats (Procedure for Conducting Public Auction of Leases and Sales in the Panchayats) Rules, 2001
(1)The Panchayat shall have power to renew the lease of right of enjoyment of shops, rooms, garages, public markets, canteen, hotels or lodging houses belonging to it and for which rent is payable on a monthly basis or for a longer period in favour of the existing lessee, if the lessee agrees to the renewal of the lease for a higher amount to be decided by the Panchayat, supported by not less than one half of the members than holding office which shall not be less than fifteen per cent for every year on the previous years lease or of rent fixed:Provided that such extension of renewal of lease shall be done only up to a maximum of three years.
