Fancy plates: Chandigarh RLA to tweak e-auction policy to check defaulting bidders

The Chandigarh Registration and Licensing Authority (RLA) had suffered a loss of ₹67 lakh in 2022-23 on account of its failure to recover the bidding amount from buyers of fancy numbers

In wake of the Registration and Licensing Authority (RLA) suffering a loss of ₹67 lakh in 2022-23 on account of its failure to recover the bidding amount from buyers of fancy numbers, authorities have proposed an amendment in the e-auction policy.

As per the proposal, if a buyer is unable to complete the payment within a month, the fancy number is to be surrendered so that it can be allotted to some other interest party. (HT File)

As per the proposal, if a buyer is unable to complete the payment within a month, the fancy number is to be surrendered so that it can be allotted to some other interest party.

A recent central audit had revealed how several bidder had only paid the reserve price for the registration number of their choice. The delay in payment of the balance amount ranged from 365 days to 619 days beyond the stipulated period, in contravention of the rule, resulting in revenue loss to the government.

The audit report highlighted that the non-provision of a clause regarding the timeline for releasing special/fancy numbers in the relevant Act not only blocked these numbers for the general public but also resulted in a revenue loss of ₹67.15 lakh to the government.

A senior official of the UT administration said a proposal to amend the policy has been sent to higher authorities for approval.

As per the existing rules, if a bidder is unable to deposit the balance bidding amount within a month from the date of auction, the bidder has to pay a penalty of 10% per annum and interest at normal rates (10% per annum) on the balance amount till the payment is complete. If the highest bidder is unable to take possession of the number for any reason, the amount deposited by them shall be forfeited.