Section 12(3) in Tamil Nadu Panchayats (Procedure for Conducting Public Auction of Leases and Sales in the Panchayats) Rules, 2001
(3)The Panchayat shall fix the amount of the security deposit for each item of lease, so that he may not retreat from the lease after the final bid. This amount shall be retained till the expiry of the lease period as a security against the violation of lease condition. In case where the estimated lease amount exceeds Rs. 10,000 (Rupees ten thousand only), the bidder shall be required to produce suitable solvency certificate for an amount to be specified in the auction notice.
