(1) The Department shall fix the place for auction the property taken under possession pursuant to Sub-section (3)
of Section 105 of the Act, also having to any proper place for sale in view of the nature of the property.
(2) The property obtained by the Department under its possession shall be sold by auction as follows, subject Sub-section (4) of Section 105 of the Act:-
(a) As far as possible, to publish a Fifteen days notice on auction sale in at least one local newspaper in
circulation in the place as referred to in Sub-rule (1),
Provided that, this provision shall not apply to any perishable (sadi gali jane) goods.  (b) To fix the market value of the property subject to auction, in presence of a representative of the local  administration nearest to the place as referred to in Sub-rule (1) and a representative of any other governmental office located nearby.
(3) The Dutch (badabad) auction shall be conducted in presence of a representative of the local administration nearest to the place as referred in Sub-rule (1), and the property shall not be sold unless the person participating in the auction offers to buy it for its market value fixed pursuant to Clause (b) of Sub-rule (2).
(4) In cases a value less than the market value fixed pursuant to Clause (b) of Sub-rule (2) has been offered in auction pursuant to sub- rule (3), the property shall be auctioned for the second time by  publishing a Seven days notice pursuant to Clause (a) of Sub-rule (2).
(5) In cases a value less than the market value fixed pursuant to Clause (b) of Sub-rule (2) has been offered in auction pursuant to Subrule (4), the property shall be auctioned for the third time by publishing a Three days notice pursuant to Clause (a) of Sub-rule (2); and it may be sold by auction irrespective the quantum of value offered.
(6) The Department shall provide an entitlement slip to the person who pays the bid value offered by him/her on the auction of the property.