36. Auction of Seized Goods and Release of Security

(1) Goods which are seized under sub-section (3) of section 56 and which are not released owing to failure to furnish security or to pay the penalty imposed under clause (b) of sub-section (4) of section 56 within the time allowed shall be sold in public auction after following the procedure as indicated below: -

(2a) The step for public auction shall be taken by the circle incharge, who shall cause to be published on the notice board of his office, a list of the goods seized and intended for sale with a notice under his signature, specifying the place where, and the day and time at which, the seized goods are to be sold and display copies of such lists and notices at more than one public place near the place where the goods were seized. Normally a notice of not less than ten days shall be given before the auction is conducted; but this condition may be waived in case of goods of perishable nature.

(2b) Intending bidders shall deposit as earnest money a sum equal to ten percentum of the estimated value of goods;

(2c) At the appointed day and time, the goods shall be put up in one or more lots, as the officer conducting the auction sale may consider desirable, and shall be knocked down in favour of the highest holder subject to confirmation of the sale by the circle in charge conducting auction or an officer subordinate to the said circle in charge;

(2d) The auction purchaser shall pay the sale value of the goods in cash immediately after the sale and he will not be permitted to carry away any part of the goods until the sale has been confirmed by the authority specified in clause (a) and full value has been paid by him. If the successful bidder fails to deposit the purchase money in full, the earnest money deposited by him shall stand forfeited to the State Government. The earnest money deposited by the unsuccessful bidders shall be refunded to them after the auction is over;

(2e) If the order imposing penalty is either stayed or reversed in appeal or revision, the goods seized shall be released forthwith. If the goods are sold before such an order and any sum received as sale proceeds on account of auction sale of such seized goods has been appropriated towards penalty imposed, the sum so appropriated shall be refunded to the owner of the goods in the manner specified in rule 43;

(2f) Any amount of sale proceeds in excess of the amount appropriated towards penalty shall be refunded to the owner of the goods in the manner specified in rule 43; the release of security deposited under clause (c) of sub-section (4) of section 56 and refund thereof shall also be in the manner specified in rule 43.