Test the person's duties and actual interest
CGST Rule 148 applies to an officer or any other person who has a duty to perform in connection with a sale under the recovery chapter. A person with that duty must not bid for the property, acquire an interest in it or attempt to acquire one, whether directly or indirectly. The prohibition covers the bid or attempted acquisition even if title never transfers. The review turns on the sale-specific duty and evidence of the interest. Do not restrict the screening to names on the portal bidder list or assume the prohibition is limited to government employees.
Read the applicable text: CBIC CGST Rules compilation, Rules 147–149 Government rules compilation, Rule 148.
Trace bidders, payments and proposed title
Build a record of assigned sale duties and compare it with the bidder, its representatives, funding, reimbursement arrangements and intended ownership. A relationship or shared address can justify further inquiry but is not itself proof that the person performing a sale duty has an indirect interest. Likewise, a company name on a bid does not end the review where an individual with a relevant duty is the actual intended acquirer.
Separate the conflict review from valuation and notice
A bid that raises the price does not cure the prohibition. Review the duty and interest against the evidence before using that bid in the auction decision. Keep the Rule 148 review separate from the Rule 147 notice, participation and re-auction requirements where applicable and from the Rule 149 holiday test. The rule does not give a percentage threshold, declare the next-highest bidder the winner, or specify an automatic refund or cancellation remedy for every fact pattern.
Escalate before irreversible steps
Preserve the operative notice, bid audit trail, assignments and evidence of payment or title instructions. Raise an evidenced concern through the appropriate authority and obtain the applicable decision before treating the bid or proposed award as resolved. If discovery is after a sale, preserve records and assess available remedies separately. Do not discard valid bids or alter the bid record to cure a suspected problem.
Six worked illustrations
All facts and amounts are fictional. Calculations illustrate the stated assumptions, not a predetermined legal outcome.
Illustrative example 1: Direct bid by a duty holder
Five bids include one submitted by a person assigned a duty in the sale. Four bids remain in the separate comparison population after isolating the prohibited bid on the assumed facts; the authority must decide the procedural next step.
Illustrative example 2: Indirect funding evidence
A ₹60 lakh bid is backed by ₹18 lakh from a duty holder under a documented agreement giving that person a share of the property. The funding is 30% of the bid. The agreement and duty matter; 30% is not a statutory threshold.
Illustrative example 3: Linked bidder without proved interest
Two of eight bidder records share an office address. Keep two flagged records and six unflagged records; the address alone proves no prohibited interest and neither flagged record should be treated as conclusively disqualified from that fact alone.
Illustrative example 4: Duplicate identities
The bidder export shows 12 rows, including two duplicate extracts of separately listed bidder records. Ten distinct records remain. Match actual bidder and representative details before relying on headcounts.
Illustrative example 5: Interest discovered after deposit
An entity pays a ₹3 lakh deposit against an eventual ₹45 lakh quoted price. The arithmetic balance would be ₹42 lakh, but that is not authority to collect it where evidence of a prohibited interest is unresolved.
Illustrative example 6: Preserve price evidence
The top two bids are ₹72 lakh and ₹68 lakh. The ₹4 lakh gap is evidence for the auction file. If the higher bid is affected, the gap neither cures the conflict nor automatically awards the property to the second bidder.
Ten-step verification table
| Step | Action | Evidence |
|---|---|---|
| 1 | Identify the sale and legal route | Operative notice and authority |
| 2 | List persons with sale duties | Assignments and access records |
| 3 | Identify all bidders | Bid register and representatives |
| 4 | Review proposed title | Bid terms and ownership instructions |
| 5 | Trace funding where relevant | Deposits and funding evidence |
| 6 | Distinguish flags from proof | Documented conflict analysis |
| 7 | Preserve bid history | Complete dated audit trail |
| 8 | Escalate unresolved concerns | Authority correspondence |
| 9 | Verify the procedural decision | Written record of outcome |
| 10 | Reconcile deposits and sale status | Auction and payment files |
Sixteen practitioner FAQs
1. Who can be covered beyond an officer?
Another person with a duty connected to that sale.
2. Is a bidder's job title decisive?
No. Check actual duties in the specific sale.
3. Can an indirect bid be prohibited?
Yes, the rule covers direct and indirect conduct.
4. Does an attempted acquisition matter?
Yes, the rule expressly includes attempts to acquire an interest.
5. Is a numerical shareholding threshold stated?
No. Review the actual interest and evidence.
6. Does common ownership prove an indirect bid automatically?
Trace the actual participation and intended acquisition.
7. Can a nominee arrangement matter?
Yes, if it evidences an indirect prohibited interest.
8. Is a shared address conclusive?
No. It is a fact to investigate.
9. Can the higher price cure the prohibition?
No. Keep price and conflict tests separate.
10. Must the next-highest bid automatically win?
Rule 148 does not prescribe that outcome.
11. Should the original bid history be edited?
Preserve the original record and document any official decision separately.
12. Do the notice rules still matter?
Yes. Apply the relevant sale procedure independently.
13. Can a deposit prove a sale is valid?
No. Reconcile payment without assuming validity.
14. What if the interest is identified after sale?
Preserve evidence and review remedies on the facts.
15. Does an allegation establish misconduct by itself?
No. Identify the duty, conduct and interest from evidence.
16. What should the review file show?
The sale-specific duty, bidder and interest evidence, and the applicable authority's decision.
Official sources
CBIC CGST Rules compilation, Rules 147–149 Government rules compilation, Rule 148