Para 10.8.1 — GOODS_MANUAL

2. All Central/ State government ministries, Departments, Public Sector Enterprises (PSEs) and affiliated bodies are urged to use this feature of GeM portal.

3. Registration and Creation of Auction Event by the Government Agency: a) The role of the Government Agency Seller is called Forward Auction Seller/ Auctioneer (FA-SA). All buyers registered on GeM shall have the option to auto-enrol as FA-SA on the Forward Auction Platform. To register as FA-SA on the Forward Auction Platform, the user first needs to register as a Secondary Buyer on GeM. b) The role of bidders in the auctions is called Forward Auction Buyer/ Bidder (FA-BB). For registration, FA-BB on Forward Auction Platform, interested users need to click on the FA Bidder Registration link under the Forward Auction menu header from the GeM Home page. Vendor assessment is not required as QCI (GeM Vendor Assessment System) validates the mandatory/ voluntary compliance required for a service and the last 3 years of relevant government/PSE experience (service-specific). Fill in all the required details and the PAN information on the registration page. After the form submission, bidders need to verify their email ID, after which they can successfully register on Forward Auction. FA-BB must ensure they meet the eligibility criteria for GeM seller registration.

10.8.1 Forward Auction on The GeM Portal: 1. GeM portal has started eAuction (Forward Auction) for disposal of assets and scrap (Machines, Agriculture & Forest Produce, Metal & Non-Metallic scrap, e-Waste, vehicles, Lube/Wast Oil, unused spares, Coal, Commercial & Residential Properties, Land, Industrial Plots. etc.).

4. Process of Auction: a) Forward Auction: All auctions are publicly published, other than limited auctions, so that the FA-BB can participate in the auction. Once the auction starts, all the events are highly secure and conducted strictly between the Auctioneer and a set of qualified Bidders on Forward Auction. After the auction ends, the auction result is made public for everyone to view, and the winning Bidders are intimated by email. General Terms and Conditions for the Forward Auction of GeM (GTC) will be applicable till the completion of the Forward Auction. Post completion of Forward Auction, ATC (Additional Terms and Conditions) of the seller will supersede the GTC (General Terms and Conditions of GeM). b) Creation of Auction Listing: FA-SA can sell their assets on GeM by creating and publishing the auction on the GeM platform. To access the FA module, the Auctioneer must log in to the GeM Portal using their User-id and Password. After a successful login, the Bidder can access the FA module. The link would redirect the Auctioneer to the FA Dashboard, where s/he can create their category of auctions and configure auction parameters (such as start price, increments, time extension, etc.). Provide details of the items to be auctioned (e.g., metallic and non-metallic scrap). Set the auction start date, end date, and time. Specify auto-time extension options (limited or unlimited). Upload mandatory documents related to the auction (GTC and STC for the forward auction). Publish the auction listing. FA-SA may specify mandatory eligibility certificates (e.g., GST Certificate, proof of EMD, and a bid covering letter, as required) to be submitted by the Bidders online/ offline before the start of the auction. c) Participation by FA-BB: FA-BB can log in to the GeM portal using the registered credentials. Navigate to the “Forward Auction” section. View ongoing auctions and select the relevant auction. Bidders can continuously bid for the items they are interested in. Eventually, the highest Bidder wins the item. All successfully registered bidders must accept the terms and conditions and then pay the EMD amount (if applicable) to participate in the Live auctions.

d) Earnest Money: FA-BB may be asked to submit EMD when the item's estimated value exceeds Rs. 5,00,000/-. The maximum rate of EMD is generally 5% of the estimated value. The FA-BB must pay the EMD amount through the Payment gateways available on GeM. The EMD amount shall be available with the GeM until the intimation /Sale letter is generated. The H1 Bidder’s EMD amount shall be auto-remitted within 2 days auction-wise in the auctioneer account after the generation of the sale intimation letter. The EMD of unsuccessful bidders shall be auto-refunded to their source account within 2 days after generating the sale intimation letter through GeM only. The entire remittance/refund details can be seen/downloaded in the auction dashboard.

e) Sale Letter: The FA-SA shall review the bids and award the auction to the highest Bidder. He shall issue an intimation letter/ sale letter to the successful Bidder. Primary users must update auction account details in their profile.

g) After Sale Actions: FA-SA must provide necessary certificates and documents as GeM requires. Provide a certificate of disposal for e-Waste items within 30 days after disposal. Keep records of auction proceedings, bids, and disposal certificates. The eWaste disposal should follow the Government guidelines currently in force. FA-SA must provide a certificate of disposal for e-Waste items within 30 days after receipt of the e-Waste.

h) For more details, please visit the GeM portal. 10.9. Disposal at scrap value or by other modes If a ministry or Department is unable to sell any surplus or obsolete or unserviceable item at the reserve price, despite its attempts through an advertised tender or auction, it may dispose it off at its scrap value with the approval of the CA in consultation with the Associated/Integrated Finance. In case the ministry or Department is unable to sell the item even at its scrap value, it may adopt any other mode of disposal, including destruction of the item in an eco-friendly manner.

f) Payment Conditions: i) Payment conditions vary based on the auction and contract terms. The payment schedule is specified in the contract. The exact mode of payment is mentioned in the auction terms. Bidders must make timely payments for the auctioned items. ii) The balance sale value (arrived at after adjusting EMD from the actual sale value but including all applicable taxes) shall have to be paid by the successful Bidder within 10 (ten) days for the lot value up to INR 5,00,000 (Indian Rupees Five Lakh) and within 15 (fifteen) days for the lot value more than INR 5,00,000 (Indian Rupees Five Lakh) from the date of bid acceptance (unless other timelines are prescribed in STC / ATC). The balance sale value, including all taxes, if not paid within the prescribed time limits, shall be paid within such time limit as may be extended by the FA-SA, together with any Ground Rent / Charges as specified in the GTC. iii) In the event the Buyer fails to make the requisite payment within the time / extended time stipulated, the sale relating to such lot can be cancelled at the discretion of the FA-SA, and the EMD deposited by the Bidder shall be forfeited in full, and the FA-SA shall be entitled to recover any incidental / consequential loss suffered by it as a result of such failure. iv) If in case of failing to deposit the Payment within the stipulated time, the Buyer can deposit the balance sale value with payment of interest charges for the delays involving a maximum of up to 30 (thirty) days for lot value up to INR 5,00,000 (Indian Rupees Five Lakh) and maximum up to 40 (forty) days for lot value more than INR 5,00,000 (Indian Rupees Five Lakh) from the date of acceptance of bid, in exceptional circumstances with prior permission of the FA-SA. The rate of interest charged on delayed payment will be 7% above the “Base rate of State Bank of India” as prevailing on the last date of payment originally indicated in the Bid. v) If the goods are not removed within the free time period prescribed by the FA-SA, it shall be entitled to recover from the purchaser the ground rent @ Rs 10/- per lot or part of a lot per day or part of a day, or 0.5 % of the value of the goods/ materials remaining undelivered per day or part of a day whichever is higher. Such ground rent or any other charges that the FA-SA may have incurred shall be recovered from the Buyer before the goods are delivered. If such materials are not removed on payment of ground rent within 30 (thirty) days from the expiry of the period as prescribed, then the FA-SA may, at his discretion, terminate the contract and order the resale of the goods and forfeit all the money paid by the Buyer in respect thereof without making any reference to the Buyer. The lot/materials shall be deemed to have been abandoned by the purchaser to all intents and purposes.