| RHD Operational Procedure – Zonal Operation Wing |
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| Zonal Operations |
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| OP/ZF/3.7 - Auction of Unserviceable Goods |
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Purpose and Scope :
This procedure describes the process for auctioning of unserviceable goods (by SDE-FIELD). This is required for disposal of the unserviceable goods lying without any utility, and to recover residual value by selling through public auction. |
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Definitions :
Survey Report - It is a financial form prescribed by the Government for preparing report for disposal of unserviceable goods by public auction. It describes the goods, their quantity, location, book value and present value.
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Responsibility :
SAE-Field - initiates the preparation of survey reports.
SDE- Field - checks and finalizes the survey report. He has no financial powers to approve survey report. However, he can sell unserviceable goods by public auction within his financial powers if the survey report is approved by competent authority, according to financial rules.
EE-Fields - is responsible for approval of survey report and selling within his financial limit.
This procedure deals with how SDE-field sells unserviceable goods by public auction within his financial powers. The operations for approval of survey report and selling of unserviceable goods by EE, SE and ACE are similar, and this procedure applies equally in these cases. |
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Method :
4.1 THE SAE INITIATES THE PREPARATION OF SURVEY REPORT
The SAE identifies the unserviceable goods from his store/goods list/Accounts, prepares survey report in prescribed survey report form and submits to SDE.
4.2 SDE FINALIZES SURVEY REPORT
The SDE checks the survey report prepared by SAE, finalizes it and submits to EE for getting approval.
4.3 EE REVIEWS THE SURVEY REPORT
EE reviews the survey report to decide if it is within his financial powers. If it is not within his financial power, he sends it to higher authority.
4.4 EE APPROVES SURVEY REPORT IF IT IS WITHIN HIS FINANCIAL POWER AND IF IT IS OK.
EE approves the survey report if he agrees with the survey report, and if it is within his financial power. Then he sends it to SDE if it is within his financial power for sale by public auction. If EE does not agree with the survey report, he returns it to SDE for doing the needful as per EE's instructions.
4.5 THE SDE ISSUES AUCTION NOTICE AFTER RECEIVING APPROVED SURVEY REPORT FROM EE
The SDE receives the survey report duly approved by EE, which is within his financial power of selling according to government rules. He issues a notice for public auction specifying a bid security (which is usually 2% of present value) for submitting bids by a specified date and time. He gives wide publicity of the auction through his office notice board, and by announcements in local bazars and important growth centres.
4.6 SDE RECEIVES BIDS AND EVALUATES
The SDE receives bids from the bidders, evaluates the bids and takes action as follows:
i) If the highest bid value is equal to or greater than the present value mentioned in the survey report, he approves the highest bid, disposes of the materials and deposits the proceeds into the treasury.
ii) If, however, the highest bid is lower than the present value, he must re-bid. If the bid in the second call is also lower than the present value, he goes for subsequent calls until he is satisfied and then evaluates the bids of all the calls. Then, he submits the evaluation report to EE with recommendation for approval of the highest bid (if it is still lower than the present value). Otherwise, where the bid is equal to or exceeds the present value, he approves the highest bid, disposes off the goods and deposits the proceeds into the treasury.
4.7 THE EE EXAMINES THE EVALUATION REPORT SUBMITTED BY SDE
The EE examines the evaluation report for all the calls. If he is satisfied with the bidding and evaluation, he approves the highest bid and returns to SDE. If not, he returns the papers to SDE without approval, and asks for subsequent calls. When he receives the evaluation report again from SDE, examines and approves if satisfied, if not, the process is repeated until the EE is satisfied.
4.8 SDE RECEIVES APPROVAL OF THE HIGHEST BID OF ALL THE CALLS LOWER THAN PRESENT VALUE FROM EE
The SDE receives approval of the highest bid of all the calls lower than the present value from EE, disposes off the goods and deposits the proceeds promptly into the treasury. |
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References :
· Financial powers of officers for approving survey reports and for selling by public auction can be seen in the relevant government circulars. (see schedule of Power - Management Manual Volume 1). |
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Procedure Flowchart :
The procedure flowchart for this procedure is detailed below - |
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