Auction by tender

DEEPAK SHUKLA (Querist) 23 January 2009 This query is : Resolved
Sir,
The Bank after proceeding under SARFAES Act 2002 invited Tender for sale of property. On the last day only one bid was recieved which was only Rs. 7 thousand above the reserve price. The action was confirmed. My question is that the bank was right on doing so because there was no competion and the price which is offered to the Bank is Less than the 50% of the present value of thye property.I have heard that atleast three tenders are mandetory but I cound'nt find the Citation or G.O.. Some one have the answer please reply its urgent.

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PALNITKAR V.V. (Expert) 09 February 2009
To my knowledge there is no such GO or citation which makes it mandatory to obtain at least 3 tenders otherwise the auction would be invalid. However, it is expected that the bank should try its level best to see that more and more people take part in auction, therefore, wide publicity of notice of auction should be given. But if only one tender is received despite sincere efforts taken by the bank, none can be blamed.

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