Annexure - Vehicle E-Auctions | KartavyaDesk
Original Rule Text
of vehicles etc. and in developing an e-auction catalog. Auction notification containing details of e-auction starting date, list of vehicles, location, ownership etc. will be sent to RVSFs. Such scrapping is to be done in accordance with the procedure as prescribed in Motor Vehicles (Registration and Functions of Vehicle Scrapping Facility) Rules 2021. 5. e-Auction is then launched on the auction portal. 6. Prospective bidders would be allowed to conduct on-site inspection of vehicles to assess fair value of the e-auction lot. High quality images may be included in auction catalog to reduce the requirement of physical inspection since the RVSFs may not have enough capacity to conduct physical inspection over a short period of time. 7. Interested bidders to deposit a pre-bid earnest money deposit (EMD) or Standing Security Deposit, as prescribed by the auction agency, to become eligible for bidding. After depositing EMD or Standing Security deposit, bidders to submit their bid on the auction portal. 8. e-Auction is to be closed at a pre-determined time. An e-auction is deemed successful if the highest bid value is more than the reserve price or within the tolerance threshold and is cancelled if the highest bid is lower than the tolerance of reserve price set by the seller. If an e-auction is cancelled, then the Competent Authority may put up the lot for re-auction after re-fixing the reserve price based on market response. 9. Auto-generated notification is sent to the highest bidder and the seller. 10. Highest bidder (RVSF) would then transfer the bid amount to the auction agency or the seller, as per the terms in the e-auction catalog. Auction agency to issue a digitally signed Delivery/Sale Order upon confirmation of payment. 11. Highest bidder (RVSF) to pick up the vehicles for scrapping and hand over a ‘Certificate of Deposit’ to the seller through the Vahan RVSF module as per the process specified in rule 10 sub-rule 1 of GSR 653 (E) dated 23rd September 2021 and its amendment vide GSR 695 (E) dated 13th September 2022. 12. De-registration of vehicles to be done by RVSF as per the process specified in rule 10 sub-rule 1 of GSR 653 (E) dated 23rd September 2021 and its amendment vide GSR 695 (E) dated 13th September 2022. 13. If the bid amount was transferred by the RVSF to the auction agency, the auction agency shall further transfer the bid amount to Union Ministries/ Departments and State Governments along with the ‘Certificate of Deposit’.
What This Means
This section of the Delegation of Financial Powers Rules, 1978, specifically addresses the process for e-auctioning vehicles slated for scrapping. It outlines the steps involved, from notifying Registered Vehicle Scrapping Facilities (RVSFs) to the final transfer of funds and issuance of the Certificate of Deposit. The goal is to ensure a transparent and efficient system for disposing of old vehicles, adhering to the guidelines set forth in the Motor Vehicles (Registration and Functions of Vehicle Scrapping Facility) Rules 2021. This process impacts all government departments and ministries looking to dispose of vehicles, as well as the RVSFs participating in the e-auctions.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- •E-auction process for vehicle scrapping involves notifying RVSFs and developing an e-auction catalog.
- •Prospective bidders can inspect vehicles; high-quality images are encouraged to minimize physical inspections.
- •Bidders must deposit an Earnest Money Deposit (EMD) to participate in the e-auction.
- •Successful e-auctions require the highest bid to exceed the reserve price or fall within the tolerance threshold.
- •The highest bidder (RVSF) receives a Delivery/Sale Order after payment and issues a 'Certificate of Deposit' to the seller.
Practical Example
The Ministry of Jal Shakti has identified several old vehicles for scrapping. They create an e-auction catalog with detailed descriptions and high-quality images of each vehicle. RVSFs are notified, and a pre-bid EMD of ₹5,000 is set. During the e-auction, 'Green Scrappers Pvt. Ltd.' places the highest bid of ₹75,000 for a particular lot, exceeding the reserve price of ₹60,000. Green Scrappers then transfers ₹75,000 to the auction agency and receives a digitally signed Delivery/Sale Order. After picking up the vehicles, they issue a 'Certificate of Deposit' to the Ministry of Jal Shakti through the Vahan RVSF module, completing the transaction.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
What is an RVSF, and why are they involved in this process?▼
What happens if the highest bid is below the reserve price?▼
What is a 'Certificate of Deposit,' and why is it important?▼
Where can I find the specific procedures mentioned in GSR 653 (E) and GSR 695 (E)?▼
Who is responsible for transferring the bid amount to the Union Ministries/Departments?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Test Your Knowledge
Question 1 of 3
According to the Delegation of Financial Powers Rules, 1978, what document is issued to the seller by the highest bidder (RVSF) after picking up vehicles for scrapping?
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