Section 21(2) in Tamil Nadu Panchayats (Procedure for Conducting Public Auction of Leases and Sales in the Panchayats) Rules, 2001
(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.
