(i) All intending bidders shall pay a sum to be specified by the Sale Conducting Officer in respect of each unit in the sale of which he proposes to participate as Earnest Money Deposit failing which the Sale Conducting Officer shall refuse to take bids of such bidders into consideration.
Explanation:- The officer shall make local arrangements for receipt of Earnest Money deposits and issue of money receipts thereof.
(ii) Every intending bidder shall deposit cash solvency and or produce a valid solvency certificate duly hypothecated in favour of concerned Divisional Forest Officer in Form-I; or produce a bank guarantee in Form-I-A. Such solvency certificate shall not be valid if it is older than six months (by virtue of the date of issue) as on the date of sale.
The amount of solvency shall be at least upto one-third of the proposed bid and such cash solvency or solvency certificate or bank guarantee shall be returned on conclusion of the sale if the bid is not knocked down:
Provided that the sale conducting officer may refuse to consider the bid if the solvency certificate or bank guarantee is not produced or cash solvency not paid.
(iii) The solvency certificate or bank guarantee or cash solvency, as the case may be, shall be retained by the Divisional Forest Officer till the contract expires or total dues to the Government are discharged whichever is, later:
Provided that it shall be open to the Divisional ForestOfficer to adjust the cash solvency or invoke the bank guarantee towards any dues to Government on account of the relevant contract or any other contract:
Provided further that it shall also be open to the Divisional Forest officer to return the cash solvency on production of the solvency certificate or on payment of full sale amount and other amount payable.
(iv) No Person shall sell or otherwise dispose of any property based on which the solvency is determined till the solvency certificate is returned by the Divisional Forest Officer. Every contractor shall give an undertaking to this effect before execution of agreement.
(v) A registered co-operative society intending to participate in a sale shall produce a certificate in form-II in lieu of the solvency certificate specified in sub-rule(ii).
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