Andhra Pradesh - Vijayawada   

Sand auctions: cases booked against defaulting bidders

VIJAYAWADA: Cheating and breach of trust cases have been booked against two persons, who made the highest bids in auctions held for sand reaches in Krishna district for not paying 25 per cent of the knockdown prices within the stipulated time of two working days, here on Wednesday.

Cases have been booked under section 406 (breach of trust) and 420 (cheating) of the Indian Penal Code in the Suryaraopeta police station against V Srinivasa Rao who filed the highest tender of Rs. 12 crore for the Damuluru sand reach and M. Mahendranath who filed the highest tender of Rs. 9 crore for the Madduru sand reach at an auction held in the sub-collector's office here on June 14.

The District Level Sand Committee (DLSC) made it mandatory for all bidders to be present at the auction and the signing of affidavits holding them liable to criminal action if they did not pay the mandatory 25 per cent of the knockdown price.

The DLSC introduced these conditions to prevent bidders from making exorbitantly high bids with an intention to derail the tendering process like in the case of auctions for the Gani Athkur sand reach.

A bidder had submitted a sealed tender for a whopping Rs 45 crore for the Gani Athkur sand reach resulting in the DLSC calling for fresh tenders. A sealed tender for Rs 18 crore was submitted the second time also forcing the DLSC to write to the State government for a solution to the problem.

But, auctions were called for three reaches before a reply came from the government with predictable results.

The only saving grace was that M. Srinivasa Rao, who submitted the highest bid of Rs. 15.36 crore for the Magallu reach, had paid the deposit in the stipulated time.

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