Administration Manual - B.E.S.T. Undertaking.

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collects on the spot 33.33% of the sale value from each successful
bidder and deposits the same in the Cash Department on the next
working day. The balance amount is required to be paid within 6
working days. The delivery of material is taken by the successful
bidder within a stipulated period, failing which ground rent at
scheduled rates is then charged.
A consolidated note to the Committee is put up by the Materials
Management Department and “post-facto” sanction of the Committee
and Corporation is obtained as required under Section 460 Q (c) and
460 Q(d). Audit staff have to scrutinize the note carefully to ascertain
that amounts of the accepted bids are as per the amounts noted by
AGM(A)/Dy.C.I.A. in the Audit copy of the material auction list and
that items are included in the correct category of sanction to be
obtained. OB Memos are then initiated by scrapped stores for the sale
proceeds, ground rent, or penalty for failure of keeping appointment,
etc.
6.8.7.2 Procedure – Sales Tenders:
In the case of material to be disposed off by Sales Tenders, the Stores
Department issues copies of the tender to registered scrap dealers and
other parties known to be interested in buying such material. When
tenders are opened, they are tabulated and sent to Audit with
recommendations of the C.O.S. In checking a Sales Tender, Audit staff
have to bear in mind the following points:
1) that the highest offer recommended is backed by E.M.D., by
referring to the advice of Supdt. Cash in the file;
2) that the tenderer has signed the tender form;
3) that where the amount of the tender exceeds Rs.3,000/-, it is
advertised in local newspapers as required under Section 460
M(l) of the M.M.C. Act;