Terms and Condition of Disposal of State Land through Open Auction dt 06.09.2024
OFFICE MEMORANDUM
Subject: Disposal of State Land through Open Auction
Kindly refer to the subject cited above.
- I am directed to state that the Terms and Conditions of Auction issued vide this office letter No. SOP/PPB/2R-3/2021/303, dated 28.12.2021 have been cancelled by the Board of Revenue, Punjab.
- Amended Terms and Conditions of disposal of state land through open auction, approved in 3rd Full Board meeting of Board of Revenue, Punjab held on 23.08.2024 are enclosed herewith, for information and further necessary action.
I am directed to enclose minutes of 3rd Full Board meeting 2024 held on 23.8.2024 at 10:00 A.M under the chairmanship of learned Senior Member, Board of Revenue, Punjab in Committee Room of Board of Revenue, Punjab for information and necessary action please.
Amended Terms & Conditions for Auction of State Land/Government Properties
- Identification and Valuation of Land/Property
i) After conducting a credible survey and before proposing disposal of available State land in rural areas and State land within cities or prohibited zones, through open auction, its potential requirement for any existing or future public purpose shall be established bi-annually by a Land Identification committee headed by the Commissioner and comprising divisional heads of the relevant departments to be notified by the Board of Revenue, Punjab.
ii) The land/property identified for privatization shall be placed before the Land Identification Committee. The Commissioner of the division concerned shall refer the identified properties after valuation through District Price Assessment Committee (DPAC) to Board of Revenue, Punjab. The Board of Revenue, Punjab may accord approval regarding auction of the property/base price through Provincial Price Assessment Committee (PPAC) as per policy/rules of the Government.
iii) If the value of the property assessed by the District Price Assessment Committee is more than one hundred (100) million, the Commissioner shall, besides the assessment by District Price Assessment Committee, refer it to the approved valuers of Pakistan Banks’ Association.
Terms & Conditions of Auction
i) Advertisement / Publication
For each proposed auction, the district concerned will publish in at least two dailies: English and Urdu newspapers of national circulation, on two occasions not less than seven days apart, notice of the availability of the property for privatization and the salient terms and conditions of the proposed privatization/auction. The district concerned shall also publish all the processes of privatization including availability of the property for privatization on its website and PPRA website.
ii) Auction Committee
The Auction Committee shall comprise of the following:
a) Judicial Member concerned of Board of Revenue, Punjab – Chairman
b) Commissioner concerned – Member
c) Deputy Commissioner concerned – Member
d) Director, Excise and Taxation – Member
e) District Accounts Officer (Representative of the Finance Department) – Member
f) Assistant Commissioner of the concerned Tehsil – Member
Note:
i) Deputy Commissioner concerned will act as Focal Person / Secretary of the Auction Committee and will provide secretariat support.
ii) The Commissioner concerned will supervise / coordinate for completion of the auction proceedings.
iii) Earnest Money
Before participating in the auction proceedings, the bidders shall deposit earnest money in the shape of Call Deposit, Bank Draft or Pay Order for the amount as published in the newspapers for each property to be privatized. The earnest money will be determined / fixed @ 5% of the PPAC’s assessment.
iv) Approval of Auction Proceedings
a) The Commissioner concerned will forward the auction proceedings within (07) working days from the date of auction.
b) The auction proceedings up to one hundred (100) million may be approved by the Board of Revenue, Punjab within 15 days.
c) The auction proceedings for more than one hundred (100) million may be approved by the Provincial Cabinet assisted by the Colonies Department, Board of Revenue, Punjab within (30) days.
d) The approval of auction proceedings as well as sanction will be communicated to District Collector of the district concerned by the Privatization Wing, Colonies Department, Board of Revenue, Punjab, within (07) days after approval of competent authority for transfer of the property in the name of highest bidder and handing over the possession.
v) Schedule of Payment
The schedule of payment will be as under:
a) The auction purchaser will be required to make payment of 25% of the total auction price including the amount of earnest money, within (07) days from the date of auction.
b) The remaining 75% of the total auction price will be paid by the successful bidder within a period of (30) days from the date of issuance of approval/sanction letter.
vi) Mode of Payment The auction purchaser shall deposit the payment in the Heads of Account of Colonies Department, Board of Revenue in Account No. C3702 or C3703.
vii) Forfeiture of earnest money/deposited amount In case the bidder fails to make payment of the auction price within the prescribed time, his earnest money/deposited amount will be forfeited by the Deputy Commissioner concerned within (07) seven days.
viii) Claim/Right by the Bidder
a) Any bidder who will participate in the auction proceedings will not be entitled to any claim or right about the property for which he will give any bid. The competent authority will have the right to reject or disapprove any bid before transfer of the property in the name of the bidder.
b) The Board of Revenue, Punjab will be competent to amend any terms and conditions for auction of Government properties.
ix) Transfer of Property through Execution of Sale Deed
c) Sale Deed/Conveyance Deed will be executed by the District Collector of the District concerned within (10) days after deposit of full payment by the successful bidder which shall be deposited within (30) days after approval/sanction from Board of Revenue, Punjab on behalf of the Government in favour of the auction purchaser on payment of prescribed registration fee, stamp duty and other legal Government dues/taxes etc. by the auction purchaser.
The views of the house were obtained, and the matter was discussed at length.
Decision The Board considered the terms and conditions for the auction of State land/Government properties and approved the agenda.
