Section 20 in The Rail Land Development Authority (Development of Land and Other Works) Regulations, 2012
20. Security and Guarantee.
(1)Each bidder, for the due fulfillment of its obligations specified in the tender documents, shall have to deposit a bid security along with its bid for each development project for an amount and in the form as may be decided by the Authority and shall have to keep it valid until one month beyond the validity of its bid.(2)Each lessee, for the due fulfillment of its obligations contained in the agreement, shall have to deposit a performance guarantee towards fulfillment of obligations of the agreement including successful completion of the development and payment of all dues.(3)The performance guarantee shall continue until successful completion of the development of project and payment of all installments for upfront lease premium.(4)Each lessee or sub-lessee, for the due fulfillment of its obligations contained in the agreement, shall have to deposit a security deposit towards payment of annual rent or percentage revenue share as may be determined by the Authority.(5)In case the upfront lease premium payment is to be paid in one or more installments, the Authority may require the lessee to deposit bank guarantees to secure the payment of outstanding installments.(6)In case the selected developer or the lessee, as the case may be, fails to fulfill its respective obligations in terms of the tender conditions or agreement, the respective bid security, performance guarantee and security deposit shall be party fully forfeited, as determined by the Authority.(7)In case the selected developer or the lessee or sub-lessee, as the case may be, fulfils its respective obligations in terms of the tender conditions or agreement, the respective bid security, performance guarantee and security deposit shall be refunded or returned without interest.(8)The Authority shall have the sole and exclusive right over the bid security, performance guarantee and security deposit till it is refunded with or without deduction or part forfeiture.
