(1) The notice of auction of lease or sale may be issued not less than ten days and not more than twenty one days prior to the date of auction or sale. The Panchayat shall approve the terms and conditions and for each kind or type of lease, before they are included in the auction notice. If new conditions or terms are to be included or existing conditions or terms to be amended, the prior approval of the Panchayat shall be necessary. The notice may contain, inter alia terms and conditions on the following matters, subject to which the lease shall be granted:-
(i) place of auction or sale, date and time of auction;
(ii) period of lease;
(iii) details of property to be sold or rights to be auctioned. In the case of avenue trees, the details of reach of the road and in other cases, the location of the property may be specified clearly;
(iv) security deposit payable for each item;
(v) number of instalments of lease amount permitted for each item;
(vi) initial amount payable at the time of auction or sale by the successful bidder;
(vii) details of solvency certificate to be produced where it is considered necessary;
(viii) prohibition of defaulters in the payment of past leases from participating in the auction or sale;
(ix) confirmation of auction or sale being subject to the approval of the Panchayat;
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(x) rate of interest chargeable for belated payment of instalment;
(xi) need for and mode of execution of lease or sale deed;
(xii) details of payment of assessment, ground-rent, peshkahs or quit - rent fixed by the Inspector, from time to time, which will be in addition to the lease amount;
(xiii) schedule of payment of the lease or sale amount;
(xiv) in case where the rent of own lands, Poramboke lands and own building of the panchayats, proposed to be leased out, the rent, lease amount, may be reckoned in terms of monthly rent for the entire lease period. This information may be specified in the auction notice also for the information of the intending bidders; and
(xv) power of the administration, to reserve any right either to postpone the sale or auction of any lease and also to cancel any lease in public interest with or without showing any reasons therefore, in the middle of the lease period for which the lessee has no right to claim any compensation.
15. Publication of auction notice - (1) The auction notice for the lease of property or right to collect fees or sale of articles shall be published in the manner specified below. Due publicity shall be given by publishing a notice containing full particulars of the property to be transferred or leased or sold and the fees to be collected, -
(i) in the notice board of the concerned Panchayat;
(ii) in the notice board of the Panchayat Union or the District Panchayat in which the Village Panchayat or Panchayat Union Council, as the case may be, is situated;
(iii) in the notice board of the adjacent Panchayat lying within five kilo metres radius of the Village Panchayat or the Panchayat Union Council, as the case may be, in which the property lies;
(iv) in important places in the Panchayat Village area or the Panchayat Union Council, as the case may be, like Chavadi, post Office, fair price shops, temples, etc;
(v) by beat of tom tom in the Panchayat Village or the Panchayat Union Council, as the case may be, where the property or place lies, on the day of auction, three hours before the time fixed for auction;
(vi) a record of publication of auction notice shall be prepared and kept in the relevant file;
(vii) by sending copy of notice to the prospective traders, dealers or agents in the District who are dealing with the property of the nature mentioned in the auction;
(viii) on the property to be leased out or place where the fees are to be collected;
(ix) any other method, the panchayat may consider necessary.
(2) The auction notice shall be caused to be published, -
(i) in the District Gazette at least seven days in advance of the date of auction, in case the lease amount is expected not to exceed Rs.10,000 (Rupees ten thousand only);
(ii) by inserting brief advertisement, in a Tamil daily newspapers having wide daily circulation in the panchayat area, atleast three days ahead of the date of auction, in case the lese is expected to exceed Rs.10,000 (Rupees ten thousand only).
(3) The Executive Authority or the Commissioner or the Secretary, as the case may be, shall estimate and decide whether a lese or sale of article would fetch an amount below or above Rs.2,000 (Rupees two thousand only), as the case may be and record his decision in the relevant file quoting reasons therefore.
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(4) The Panchayat may dispense with the publication of auction notice in the District Gazette or in the newspapers, in the case of reaction, during the middle of the lease period arising out of termination of the lease for non-fulfilment of lease conditions.
16. Auction procedure - (1) In the case of auction conducted by the Panchayat, a Committee comprising of three members for supervising the conduct of auction, of leases or sale may be constituted by the concerned panchayat for ensuring greater transparency. In case of a Village Panchayat such Committee may include besides the Executive Authority, the Vice- President and the members from the ward where the property to be leased or sold lies. The Executive Authority or the Commissioner or the Secretary, as the case may be, shall inform the Committee members in writing atleast three days in advance for making themselves present at the place of auction or sale.
(2) The Executive Authority or the Commissioner or the Secretary, as the case may be, or the person authorised to conduct the auction shall be present sixty minutes ahead of the time fixed for auction at the appointed place. If more number of items are to be auctioned, auction shall be conducted one after another. The highest bid amount shall be either recovered alongwith necessary security deposit or the first instalment of total bid are collected before commencing the next item of auction. The deposit of all un-successful bidders may be refunded to them on the spot or after all the auctions under the question are over with due acknowledgement.
(3) No person shall be eligible to participate in the auction, if he was irregular in paying instalment amounts in respect of any previous auction held in that Panchayat or if he has failed to comply with any of the terms or conditions of a previous auction, resulting in the damage to the lease property.
(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 be further reasonable level from which the bid be increased by the bidders.
(5) As soon as the auction is over, the security deposit amount and the lease amount released in full or in parts shall be remitted into the concerned Panchayat Fund Account and printed receipts issued to the payees by the Executive Authority or the Commissioner or the Secretary, as the case may be.
17. Procedure for lease cancellation in the middle of lease period - (1) If it is found that a Lessee has violated any of the lease conditions, which is considered by the panchayt as a serious irregularity like failure to remit the instalment of the dues on or before the due date or cause serious damages to the leased prosperity and failed to restore the damages to the original position, the Executive Authority or the Commissioner or the Secretary, as the case may be, shall issue a show cause notice to the Lessee as to why the lease should not be terminated on account of the violation of lease conditions which shall be specified in the show cause notice and require him to submit his reply within seven days. This notice shall be served on him as per the provisions of the Tamil Nadu Panchayats (Manner of Publication of Notification or Notice and Manner of Service of Documents to the Public) Rules, 2000.
(2) After the expiry of the period specified in the show cause notice, the Executive Authority or the Commissioner or the Secretary, as the case may be shall decide on the merit of the case after taking into consideration the explanation of the Lessee, if any, received and after obtaining the resolution of the Panchayat for termination of lease, issue suitable orders to the Lessee. If the lease is terminated, such order shall also be served on the Lessee as per the provisions of the Tamil Nadu Panchayats (Manner of Publication of Notification or Notice and Manner of Service of Documents to the Public) Rules, 2000. The orders of termination shall include the consequences of termination in accordance with the conditions of lease deed, the important among them, being that the Lessee shall be liable to pay any loss to the Panchayat arising out of the termination of lease and re-auctioning or by departmental management of the lease property or right.
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