TERMS AND CONDITIONS FOR SALE /AUCTION OF THE FIXED ASSETS OF UNITS/PROJECTS TAKEN OVER BY THE CORPORATION U/S 29 OF SFC’S ACT 1951

(With effect from 6.8.02)

1. All the bidders are required to deposit Rs 2.00 lacs ( Rupees two lacs only) through demand draft payable in favour of RIICO Ltd ,Jaipur as Earnest Money with the offer. No bid/proposal shall be considered/accepted without the requisite Earnest Money .

2. The fixed assets of the unit are being sold on “ AS IS WHERE IS ” basis.

3. The corporation shall have the right to put the fixed assets for open auction (after receipt of bids/offers) and to get the value of the offers increased through negotiations.

4. he Corporation reserves the right to accept any offer or to reject all or any of them without assigning any reason thereof.

5. All the offers/bidders shall be required to submit their offers on deferred payment basis i.e.-

a .The bidders shall deposit 25% of the agreed sale consideration (after adjusting the earnest money) within 30 days from the date of issue of sale letter.

b. The balance 75% of the agreed sale consideration shall be paid by the bidder in 5 years in 20 equal quarterly installments with a moratorium period not exceeding 12 months from the date of deposition of 25% down payment.

c. The balance 75% of the sale consideration (i.e. deferred portion of sale consideration) shall attract interest at the prevailing term lending rate on the date of auction (at present 13.5% p.a.) compounded on quarterly rests basis from the date of taking over the possession of the fixed assets or after 30 days from the date of issue of sale letter whichever is earlier.

d. In case of default in repayment of interest and/or principal on the due dates, liquidated damages @ 2% p.a. shall be charged. In addition, the Corporation shall have right to initiate legal action under Section 29 and other provisions of the SFCs Act, 1951.

e. In case bidder fails to deposit the 25% down payment within the stipulated period of 30 days, the Earnest Money already deposited by the bidder shall be forfeited.

6. The Corporation will, however, give preference for sale of entire fixed assets of the unit on CASH DOWN BASIS by offering a discount of 15% (fifteen percent) on the deferred payment portion of the highest offer (i.e. on balance 75% value of highest sale consideration received in the auction on deferred payment basis). If agreed, then the bidder will be required to deposit total sale consideration (i.e. after deducting/availing 15% discount on deferred payment portion) within 30 days from the date of issue of the Sale Letter.

7. The bidder, if so desire, can also submit their offers for purchase of part assets of the unit i.e. either Land & Buildings or Plant & Machinery separately. The offers for Plant & Machinery shall be considered on Cash Down Basis only, whereas for Land & Buildings, the offers can be submitted on Cash or Deferred payment basis. For cash payment for Land & Building, 15% discount on deferred portion will be available.

8. If the offer/bid is accepted by the Corporation and the bidder does not come forward to accept the same, the amount already deposited by the bidder towards Earnest Money shall be forfeited.

9. The successful bidder within 30 days from the date of issue of sale letter, shall take over the possession of the fixed assets after depositing initial 25% down payment and executing the Agreement to Sale and other legal documents.

10. The bidders/purchasers will be responsible for payment of all the IPI dues of the Corporation related to land, including for unauthorized construction etc., whatsoever, separately, prior to execution of conveyance/sale deed/agreement to sale.

11. The bidders/purchasers will also be responsible for payment of dues of Central Government Departments/Agencies, separately.

12. Any expenses on account of registration of Sale Deed/Agreement to Sale shall be borne by the bidder/purchaser.