Section 19 in Andhra Pradesh Excise (Lease of right of selling by shop and conditions of licenses) Rules, 2005
19. Other requirements.
- [(1) The auction purchaser shall submit two fixed deposit receipts or Bank Guarantees in Form A-5, each equal to 1/6th of the lease amount, valid upto 5 months and 9 months respectively issued by a Scheduled Bank situated in Andhra Pradesh within fifteen days of knocking down of the shop in his favour and obtain the licence. Before the auction purchase obtains the licence he shall also show his immovable property (in Form-A(2) and sureties (In Form-A2S) as Security put together to a minimum of ½ of the lease amount."Provided that the auctioning authority may, at his discretion, for valid genuine reasons that may be recorded in writing, grant extension not exceeding seven working days to the successful auction purchaser for submission of Fixed Deposit Receipts or Bank Guarantees in Form- A5, and to obtain the licence.] [Substituted as per G.O.Ms.No.598, Rev(Ex-II), dated 26.5.2006.](2)The licensee shall remit 2nd instalment sum equal to 1/6th of the lease amount, on or before 20th October and furnish a fresh bank guarantee for 1/6th of the lease amount valid for 9 months. The licensee shall remit 3rd instalment sum equal to 1/6th of the lease amount on or before 20th February and furnish a fresh bank guarantee for 1/6th of the lease amount valid for 9 months. The licensee shall remit 4th instalment sum equal to 1/6th of the lease amount on or before 20th June (of the 1st year of the lease period) and furnish a fresh bank guarantee for 1/6th of the lease amount valid for 9 months. The licensee shall remit 5th instalment sum equal to 1/6th of the lease amount on or before 20th October (of the 2nd year of the lease period) and 6th instalment on or before 20th February (of the 2nd year of the lease period).(3)In case of default in payment of any instalment, the fixed deposit receipt, or the Bank Guarantee amount shall be adjusted against the instalments of lease amount on the due dates.(4)All interest accruing on fixed deposit receipts shall vest in the Government and may be adjusted towards Government dues including interest, if any outstanding against the auction purchaser and if there be no such dues it shall be refunded to the auction purchaser at the end of the lease period.
