Section 16(4) in Tamil Nadu Panchayats (Procedure for Conducting Public Auction of Leases and Sales in the Panchayats) Rules, 2001
(4)A suitable upset price may be fixed at the commencement of auction which may be based on the last auction, the prevailing market prices and the prospect at the present auction. If the situation warrants, reasons for which shall be recorded in writing amount may be lowered to a further reasonable level from which the bid be increased by the bidders.
