(a) When the lease was cancelled due to violation of lease condition by the Lessee;
(b) When another person comes forward to bid for higher amount by remitting an amount higher, by one and a half times more than the bid amount;
(c) When the Inspector or any other authority empowered by him cancel the auction on account of proven irregularities committed in the auction held already; and
(d) When the Panchayat itself resolves to conduct re-auction on the ground that the bid amount is too low to be considered as a reasonable bid, compared to the last auction or taking into consideration of the prevailing circumstances.
(2) In the event of re-auction, the procedure laid down for conducting auction in these Rules shall be observed all over again, starting from the issue of re – auction notice onwards.
Before commencing re-auction proceedings, a written order canceling the previous auction, shall be issued by the Executive Authority or the Commissioner or the Secretary, as the case may be based on the resolution of the Panchayat or the orders of the Inspector.
(3) The Executive Authority or the Commissioner or the Secretary, as the case may be, shall be competent to cancel and auction in the event of a situation specified in clause (b) in sub-rule (1) and issue orders before seeking permission of the Panchayat for conducting a reauction.
(4) When re-auction is ordered, the publication of a notice in the District Gazette and the newspapers may be dispensed with if the Executive Authority or the Commissioner or the Secretary, as the case may be, considers that the bid amount at the re-auction may not be at a level warranting such publication and accordingly notice for shorter duration may be given
19. Confirmation of auction - The Executive Authority or the Commissioner or the Secretary, as the case may be, shall as soon as possible or within a week of conduct of auction, during which period a request for auction for a higher amount is likely to be expected, place before the Panchayat, the records of auction of lease or sale with his remarks in writing on the acceptability or otherwise of one or all the bids. The Panchayat shall decide as to which of the bids shall be accepted and record its reasons where the bid accepted is not the highest or for rejecting a bid or bids higher than the one accepted. In case the Panchayat decides to reject all the bids and resolve to conduct re-auction, it shall record the reasons for ordering such re-auction, If the Executive Authority or the Commissioner or the Secretary, as the case may be, is not satisfied with the decision of the Panchayat, he may bring it to the notice of the Inspector, The decision of the Inspector thereon shall be final.