Section 16(5) in The U.P. Excise Licences (Tender-Cum-Auction) Rules, 1991
(5)Following precautions need to be observed while deciding the bids :(i)Care should be taken in respect of bids obviously in excess of fair market value of the licence or which are the result of speculation or ulterior motive, the acceptance of such bids as may be injurious to the interests of the consumers and ultimately to the excise revenue.(ii)It is necessary to guard against the acceptance of bids which may have the effect of constituting an overt or covert monopoly and against the acceptance as licence holders of undesirable persons of doubtful solvency or criminal background.
