Welcome To HP State Forest Development Corporation Ltd.
Towards Sustainable Forest Management
Himachal Pradesh State Forest Development Corporation Limited
an undertaking of the HP Govt. came into existence on 25th of March
1974. This corporation deals with the Marketing of mainly Timber Fuel
wood, pulpwood, bamboo, khair, rosin, turpentine oil, subsidary products
( viz. phenyl, varnish, black japan ). read more



1.         This auction sale is being held on behalf of the H.P. State Forest Development Corporation Limited (hereinafter to be called as Corporation) for the timber and/or Forest Produce in Hamkasth sale Depot_____________ on this ________________. 


2.1       The timber is auctioned on the basis of AS IT IS WHERE IT IS AND IN WHATSOEVER CONDITION IT IS. 

2.2       The bidder(s) shall be deemed to have inspected the lots. The bidder(s) accepts/accept as correct the lot, kind measurement, classification and calculation of volume of timber put for sale and as given in the sale lists and depot records. Any clerical mistake in the lists will of course be     corrected and payment will be due/received accordingly. 

2.3       In case of any doubt re-measurement of timber, can be requested within one week of auction on depositing 1 % of the highest bid amount. If the variation is up to 3 % in volume of the total scants in the whole lot(s), no  change will be made in the measurement and the amount of 1% deposited shall be forefeeted. If the variation is more than 3 % rebate/ credit for the short fall  in volume on the basis of volume auctioned in the lot shall be given and the amount of 1%  deposited shall be refunded. 


The auctioning Authority shall have the right to check whether any particulars bidder is duly and properly authorized by the firm for whom he is bidding and reserve the right to permit bidding or not by any individual/ firm at his sole discretion. 

3.1       The purchaser (s) who is /are found have indulged in any  kind of malpractice in the HSD at any stage directly or in connivance with the staff of HPSFDC, will be debarred from participating in any future auction of timber conducted by HPSFDC. 

4.         BID  

"The bid by the bidder shall be inclusive of all taxes whether VAT  as applicable and TDS (except Surcharge and Education cess thereon) under section 206C read with Section 44 AC   of   the income Tax Act 1961 and Market fee @ 1% (one percent).

Provided that it is  clearly understood that the purchase price shall be the bid amount as reduced by   the element of VAT, Market Fee and TDS (except Surcharge and Education cess thereon) therein and any acceptance  of the offer on the spot or subsequently by sanction as hereinafter stated shall be for such reduced amount which shall constitute the consideration of the sale. 

Provided further that the Auctioning Authority shall announce on the spot the purchase price payable, the VAT, Market Fee, TDS, Surcharge and Education cess thereon as applicable to be deposited as stated above". 

5.         DURATION OF BID 

Bid once offered shall remain open for 30 days from the date of auction. The Auctioning Authority without assigning any reason may not accept any final bid given at the time of the auction in which case the earnest money referred to in clause 8 shall be refunded forth with. 

6.  The Auctioning authority reserves the right to withdraw, combine or split any lot specified in the sale list. 


7.A  "PAN Eligibility:  Every bidder must have a PAN number. Its proof be produced. A photo copy of PAN number be submitted to Divisional Manager Himkasth Sale Depot before bidding. Those who do not supply this cannot participate in the auction".

7.1   The intending bidder(s) is / are required to deposit a sum of Rs. 5000/- or more at the discretion of the Auctioning Authority to become eligible for bidding in the auction sale. Those who do not deposit this amount can not participate in the auction sale. 

7.2    MODE OF PAYMENT:  The eligibility deposit may be paid in cash or by demand draft in favour of the Corporation. 

7.3    ADJUSTMENT: The eligibility amount may be adjusted against the purchase price in case of successful; bidder at his request.          

7.4         REFUND: The eligibility deposit shall be refunded  to such bidder(s) who are not  liable to deposit any earnest money. 

7.5  FORFEITURE:  If the highest bidder does not deposit earnest money at the fall of hammer or within such extended period as the case may be, eligibility deposit shall stand forfeited for the HP State Forest Development Corporation Limited. 


8.1 The earnest money deposit payable by the highest bidder(s) shall be 10% of the total purchase price. The Auctioning Authority may, however raise the earnest money during the auction at his discretion. 

8.2  In respect of C Class timber and resale lots, 30% of the total sale amount will be realized as earnest money. 

8.3   TIME OF PAYMENT OF EMD: At the fall of hammer, the highest bidder(s) shall deposit the earnest money in cash or by bank drafts. Pay order/Banker cheque of local station (Where HPSFDC or concerned HSD has a Bank Account) shall also be accepted. Any bidder(s) who gets his/their eligibility deposit adjusted against the earnest money due from him/them, shall not bid for any other lot(s) unless he/they has/have made a fresh eligibility deposit. 

8.4   EXTENSION FOR PAYMENT OF EMD: The Auctioning Authority may at his discretion allow the earnest money in whole or  part to be deposited within two days of the date of auction instead of at the fall of the hammer without charging any extension fee. 

8.5    The Divisional Manager/ Depot Officer may allow a further extension of 7 days from the date, of auction for deposit of earnest money extension charging @ 50% P.A on earnest money deposit unpaid.

8.7   FORFEITURE:  In case of highest bidder fail to pay the total bid money/    price within the specified period or within such extended period as the case may be, the earnest money deposit shall stand forfeited to the HPSFC and the HPSFC shall have the right to re-sell/ re auction the said lot.

9.         MODE OF PAYMENT:-

 All demand drafts shall be on any scheduled bank in favour of HP State Forest Development Corporation Limited and payable either at Shimla or the nearest Town/City/Village where the Himkashth Sale Depot has a bank account. Pay Orders/Banker Cheques of local station (where HPSFDC or concerned HSD has a Bank Account) shall also be accepted. The successful purchasers shall tender one  Bank Draft towards sale price payable either at Shimla or the nearest     Town/City/Village where the Himkashth Sale Depot has a bank account. The    other Bank Draft towards taxes/market fee shall be payable only at nearest  Town/City/Village where the Himkashth Sale Depot has its bank account drawn in favour of the H.P. State Forest Development Corporation Limited.


The date of sanction will be the date announced by the sanctioning authority on the spot or the date mentioned in the telegram to the President of Timber Merchant Association at Yamuna Nagar/ Pathankot as well as the Divisional Manager/ Depot Officer concerned. Provided that such sanction shall always be subject to condition of deposit of the income tax due from the purchasers as per the provision of section 44 AC read with section 206 C of Income Tax Act, 1961 along with the sale proceeds. Provided further that the deposit of Income Tax payable by the Purchaser within the stipulated time as aforesaid, shall be a condition precedent to the sale and failure to do so shall be deemed to constitute retraction of the bid by the bidder and make him to liable the forfeiture of earnest money deposit and give the Corporation the right to re-auction the resiled lots afresh. 


11.1  The purchaser (s) shall pay the price of timber purchased within 40 days of sanction as stated in para 10 above and shall also lift the entire timber sold to him /them within this period of 40 days.

11.2   Director (marketing) may under exceptional circumstances and on  application by the purchaser (s) allow and extension in making the payment up to  30 days as he considerers fit on the payment of interest @ of 27% P.A. on the belated amount in the manner prescribed for making the payment.  

11.2 (a) Beyond the period specified in 11.2 Executive Director  may  give extension in period of payment on payment of interest @ 2.5 % PM  on  belated payment. 

11.3   PART PAYMENT AND REMOVAL: While applying for extension under clause 11.2 the purchaser will deposit 10% of the total sale value of the timber purchased by him with the concerned Divisional Manager to qualify for extension beyond 40 days. The Divisional Manager may recommend the extension with   27% interest on the belated sale amount in the manner prescribed for making payment. This 10 %   security amount will be adjusted against the value of the total timber purchased by the bidder at the time of making final payment of the timber purchased. However, if he fails to make the payment within the extended period, the amounts so deposited by him will be forfeited to the Corporation and no further extension will be granted. 

11.4   If the entire payment of the sold lot of timber is make within 30 days from the effective date of sanction, the rebate will be allowed following rates:-


                        1.  If payment is made within 15 days           = 3%

                        2.  If payment is made within 30 days           = 2%

11.5  MODE OF PAYMENT: Payment of sale price within the period of 40 days shall be made by crossed demand drafts only drawn as stated in para supra.

11.6   GRACE PERIOD: In case of payment by demand draft as stated in para 11.4a grace period of 3 days will be allowed for receipt of the drafts at Sale Depots, provided the date of issue of the demand draft is within the period specified above. In case the last day on which any payment is to be made to the Corporation is a holiday either in the Himkashth Sate Depot of the Corporation or in the Banks in HP Punjab and Haryana then the date shall automatically stand extended to the next working day. 

11.7   ADJUSTMENT OF EMD: The earnest money deposit for a particulars lot will be adjusted only when the final payment of the lot is made by the purchaser in the period mentioned above. 

11.8   FAILURE TO PAY: In case any purchaser  fail to pay the whole or in part the price for the sold lot within the prescribed time of 40 days as stated in    sale condition 11.1 above and the timber is not lifted by the party within the  stipulated period as well as within  extended period covered under the  sale condition NO. 12.3 and 12.4. the entire earnest money or purchase price received shall be forfeited and the Corporation shall have the right to resale the timber. 


12.1   The purchased timber shall be lifted only against a release permit   issued by the Depot Officer. 

12.2  PERIOD FOR LIFTING: The purchaser shall lift the purchase timber within 40 days from the date of sanction. However, if after full payment of the lot has been made and the entire quantity can not be lifted for  want of Truck load, such timber may be allowed to be kept in the Depot upto the 20 days after the date of next auction without any Depot rent. The quantity which may be detained under this concession will not be exceed 8m3. In case the purchaser fails to lift this timber within the period specified above, depot rent as provided herein after shall by payable from the date of expiry 40 days from the date of sanction in respect of that lot. 

12.3  EXTENSION OF 30 DAYS: The Divisional Manager or Depot Officer may allow extension upto 30 days beyond the time specified for lifting in clause in 12.2 above on payment of Depot rent @ 22%  P.A on pro rate  value of timber  and unlifted. 

12.4   FURTHER EXTENSION: The Director (Marketing) may under exceptional circumstances and on an application by the purchaser allow a further extension for 30 days or payment of Depot rent @ 22% P.A. on the pro rata value of un-lifted timber. Director (Marketing) may give further extension on charging depot rent @ 3% per month. No extension will be granting in respect of C Class        timber beyond the period as mentioned in condition 12.3. 

12.5  STACKING: All timber as per para 12.2 to 12.4 at the discretion of the     Depot Officer/ Divisional Manager will be removed and stacked in a separate portion of the depot at the cost of purchaser. Such cost will be deposited in cash before the issue of the release order by the Depot Officer/ Divisional Manager.

13        PALTAI:

Paltai of timber of the sold lot may be allowed to the purchaser provided this is  done in the presence of Divisional Manager/ Depot Officer and no disturbance is   caused to the adjoining stacks and the full payment of the stacks in question has   been made. 


No purchaser shall sell timber purchased by him to another party while such timber is lying in the Corporation depot. No sawing or conversion of timber is to be permitted in the depot premises under any circumstances what so ever. 

15                  CONDITION FOR REMOVAL:

No timber shall be allowed to be removed from the sale Depot without the    issue  of proper release order to be issued by the Depot Officer as per Corporation rules and without timber having been marked with export sale hammer and presentation of the release order, challan and Gate pass as per Corporation Rules& Regulation in force from time to time.                 

16        ARBITRATION:

All or any dispute arising out of the auction sale of interpretation of any of the sale condition contained herein shall be referred to the Managing Director, HP State Forest Development Corporation Limited and his decision shall be final and binding on the purchaser.


Court proceeding if any connected with the sale shall be subject to the jurisdiction of Himachal Pradesh Courts only. 

18.       The auction sale in HSDs are subject to such restriction as may be imposed by the Govt. of H.P. from time to time. 

19.       These conditions of sale shall also from the terms of the Agreement Deed between the seller (HPSFDC) on the one side and buyer on other side. 



Certified that I/We heard/read and understood the above conditions of sale in respect of timber put to auction as announced on the day time and timber and place mentioned above and sign with my/our own hand(s) in acceptance thereof and will abide by these.


Name & Address of the purchaser(s)





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