Auction Proceedings

Auction of timber

Auction is conducted by the auction committee including the concerned Dy. Manager Marketing along with his supporting staff, supervised by a Presiding Officer nominated by the FDC Head Office and usually monitored by the representative of Forest Department and Join Forest Management Committee members. All the auction proceedings are video recorded.
Sub lots are offered for sale and sold to the bidders offering the highest rates.

Collection of earnest money

Successful bidder of each sub lot deposit 10% of the total sale value on the spot. The amount is collected by the bank officials deputed by designated bank to timber markets on the auction days.

Release of timber

The timber sold in auction is required to be lifted by the purchaser within 60 days after the date of auction failing which may suffer forfeiture of his earnest money, however, extension in date of lifting could be granted for specific period after payment of extension and rental fee at prescribed rates. For release of the timber the purchaser has to deposit the following amount in the specified bank branch:
- 90% balance sale value.
- Forest Development Fund "FDF" (Rs. 10, 8,6 and 4/Cft      
  for Deodar, Kail, Fir and Chir respectively).
- Forest duty (Rs. 30/cft).
- Income/sale tax, where applicable (10% & 17% respectively).

After payment of 90% balance sale value, duty and taxes of the sold timber release order is issued. Finally disposal challan and gate pass is issued. The sold/released timber is properly entered in the relevant registers.