Section 12 in Tamil Nadu Panchayats (Procedure for Conducting Public Auction of Leases and Sales in the Panchayats) Rules, 2001
12. Fixing of number and amount of instalments.
(1)The Panchayat shall fix the number of instalments for the payment of lease amount by the lessee as follows: -(a)Where the lease period does not exceed one year, the lease amount may be permitted to be paid in not exceeding two instalments, to be decided by the Panchayat in respect of every lease: Provided that the last instalment shall be paid before six months of expiry of the period of lease:Provided further that in case the lease amount does not exceed Rs. 5,000 (Rupees five thousand only), it shall be paid in one lump sum within five days of execution of lease deed:Provided also that in the case of lease of usufructs of avenue trees, the lease amount shall be paid in one lump sum before the execution of lease deed;(b)Where the lease period exceeds one year, the lease amount may be permitted to be paid in not more than two instalments for every year of lease, the last instalment being payable at least one year before the period of expiry of the lease period of lease or in the beginning of the lease period, whichever is earlier.(2)The Panchayat shall take action to terminate the lease in case a lessee fails to remit the instalment within seven days after the expiry of due date besides initiating action to realise the balance as per the lease deed from the lessee.(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.(4)Every successful bidder in an auction shall be required to remit, soon after the bidding is over for an item, and before starting the bid for the next item, an initial amount, excluding the recently deposited amount, calculated at not less than ten per cent of the bid amount which, together with early paid amount, would constitute the first instalment of the amount in the case of lease not exceeding one year and fifteen per cent of the bid amount in cases where the lease period exceeds more than a year, equal to two instalments of amount.
