Section 21 in Tamil Nadu Panchayats (Procedure for Conducting Public Auction of Leases and Sales in the Panchayats) Rules, 2001
21. Procedure for sealed tenders.
(1)The Panchayat shall have power to invite tenders in an open and transparent manner for the enjoyment of lease of a property or right to collect fees covering the salient formalities and legal aspects of -(i)if, the Panchayat has reason to believe that due to collusion among the bidder or due to any other reason like, either there was no bid at least on two occasions; or(ii)the bid was kept at a very low level whereby the interest of the Panchayat was deliberately defeated. The terms and conditions which are normally prescribed in the auction notice for lease may be adopted with such modifications as are necessary when calling for tenders.(2)When tenders are invited for letting out the lease of a property or right to collect fees, the Panchayat shall have power to accept either the highest tender or a tender which is not the highest, but the next higher, after recording the reasons for the same in writing.
