Government surplus
The Government, whether state or central can from time to time come up with a list of items that it considers as surplus to its use. If any government body or related organization can not find use for these assets then they are disposed off by putting them up for auction for the general public. Government surplus items can be as diverse as Plant and machinery, equipment of any kind, vehicles, agricultural implements, real estate etc. The sale of such items can be public or a tender sale.
Government auctions are carried out from time to time to sell surplus government items which can be held at any time of the year and in any place in the country. However the organizing body usually remains the same. The items that are sold are of interest to both the individual and businesses. The advantage of the government carrying the liquidation sale is that reduces the tax burden on the people. The surplus is not sold for a profit and some of the goods are in good condition and of good quality. Therefore these government auctions are quite popular with the people. Land that is to be sold is with the consideration that it will be of more use to private people than the Government.
The date and place of auction of the surplus
government items is usually made known in advance with an ad in local
newspapers
Before the items are put for auction there are days allotted to do the
inspection and check the items put for sale. This allows the prospective
bidders to do a valuation of the items to be sold and in case of land it is
important that knowledge of the land being auctioned is gained. The goods
are sold as is where is and there are no refunds or replacements or
warranties.
For a live auction, the mode of payment can be cash or check, company/personal check with a bank letter of guarantee and the major credit cards are also accepted. However full payment has to make before the removal of the item from the auction premises.
Alternately a twenty percent non refundable advance can be paid and the rest can be paid within five days. The necessary papers, if produced, can obtain the bidder a tax exemption but the highest bid that gets finalized has to be honored by the bidder. However certain items on being auctioned require papers to be produced, like for example, a drivers license for surplus government vehicles.
Author F. Peris. copyright data 2004 Indianchild.com
Useful resource :
Directorate General of Supplies
& Disposals
Ministry of Commerce & Industry
Government of India
Jeevan Tara Building
5, Parliament Street
New Delhi - 110 001
India
Official site : http://dgsnd.nic.in/
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