Primary law, Tamil Nadu land law
The Tamil Nadu Panchayats (Procedure for conducting public auction of leases and sales in the Panchayats) Rules, 2001
The Tamil Nadu Panchayats (Procedure for conducting public auction of leases and sales in the Panchayats) Rules, 2001 were issued in G.O. (Ms) No. 277, Rural Development (C-4) Department, dated 22nd November, 2001 by the Governor of Tamil Nadu under the Tamil Nadu Panchayats Act, 1994, and they supersede earlier rules on the same subject. The rules set out how Village Panchayats and Panchayat Union Councils can lease out Panchayat properties and rights, and sell certain unusable articles, through public auction in an open and transparent manner.
What this governs
The Tamil Nadu Panchayats (Procedure for conducting public auction of leases and sales in the Panchayats) Rules, 2001 govern public auctions by Panchayats for leasing Panchayat properties and rights, and for selling certain unusable or unserviceable articles.
These rules cover both property owned by a Panchayat and some Government poramboke or other vested property under Panchayat control. They also cover rights such as collecting fees in public places and putting up advertisement boards or hoardings.
Who it affects
These rules matter to:
- bidders who want to take Panchayat land, shops, stalls, markets or other property on lease
- people seeking rights to collect fees in markets, bus stands, slaughter houses, fish markets, ferry places and similar public places under Panchayat control
- traders wanting to use road margins, street margins or public places for sale of articles
- anyone seeking space for advertisement boards or hoardings on Panchayat land or buildings
- buyers of unusable or unserviceable Panchayat articles sold by auction
What can be auctioned
The rules list items that may be leased out, including:
- Panchayat own lands and other immovable properties
- vested or regulated poramboke lands under Panchayat control
- shops, rooms, rest sheds, market stalls, canteens, hotels, lodging houses and other buildings
- cutting of grass in irrigation tanks and other places under Panchayat control
- usufructs of trees on Panchayat roads, topes and certain other roads or lands under Panchayat control
- rights to collect fees in markets, cart stands, landing or halting places, bus stands, slaughter houses, fish markets and ferry places
- use of road margins and street margins for sale of articles
- use of public places for advertisement boards
The rules also allow public auction sale of unusable or unserviceable articles, including wind-fallen and withered trees, sweepings, worn out machinery, tools, plants, electrical fittings, and old newspapers, journals and obsolete records after tearing them out.
Key limits and controls
- Panchayat land or immovable property can be leased, but a lease beyond three years, or a lease allowing any building or structure, needs sanction of the Inspector.
- Government poramboke vested with the Panchayat cannot be leased beyond twelve months without previous sanction of the Inspector.
- Road margins and street margins cannot be leased for cultivation.
- Temporary structures on road margins and street margins may use easily removable materials for leases not exceeding twelve months.
- A Panchayat or the Inspector may require removal of a temporary structure in public interest during the lease period, without compensation to the lessee.
- The Executive Authority, Commissioner or Secretary, as the case may be, conducts the auction or sale.
Lease periods and payments
The rules prescribe maximum lease periods for different properties. Examples in the text include three years initially for own lands and certain own buildings, one year for many other categories, and five years for fishery rights in water sources under Panchayat control.
The Panchayat fixes instalments, security deposit and auction conditions. If a lessee does not pay an instalment within seven days after the due date, the Panchayat must take action to terminate the lease and recover the balance as per the lease deed.
This summary is generated from the source document to help you find what is relevant. The PDF above is authoritative. For advice on your own property, use LandLens One or speak to a qualified professional.
Common questions
Can a Panchayat lease out its own land or buildings by auction?
Yes. The rules allow a Panchayat to lease its own lands and other immovable properties, and buildings such as shops, rooms, canteens, hotels, lodging houses and rest sheds through public auction.
Can I put up a structure on leased Panchayat roadside land?
Only subject to the restrictions in the rules. For leases not exceeding twelve months, temporary structures made of easily removable materials may be permitted, and stronger or longer term structures need previous approval of the Inspector.
Can a Panchayat remove my temporary structure before the lease ends?
Yes. For road margins and street margins, the rules say the Panchayat or the Inspector may require removal in public interest during the lease period, and the lessee has no right to compensation.
Who conducts the auction for Panchayat leases or sale of old articles?
The Executive Authority or the Commissioner or the Secretary, as the case may be, conducts the auction of lease or sale of articles belonging to the Panchayat.
