Auction Procedure
Auction Procedure
At MStar Chits, every subscriber is eligible to participate in the monthly auction conducted for each chit group. The auction duration is five minutes, and members may participate in person, through written bids, or via a duly authorized representative. Subscribers paying their subscription in cash on the auction date must produce the original receipt during the auction. Each group is assigned a specific date and time for the auction, and it is conducted as scheduled unless there is a public holiday or unavoidable reason. In case of any change, a revised notice will be shared with all subscribers through our branches.
Subscribers may also submit bid offers through branches up to 10 days in advance of the auction date. A fresh bid offer must be submitted for each auction. If the prize is to be decided by lot, subscribers must send a specific written request to be included in that month’s lot. Bids must follow the slabs fixed by the Foreman, and telephone or telegraphic offers are not accepted.
All groups maintain a minimum discount of 5% and a maximum discount of 40%. If more than one subscriber bids the maximum 40%, a draw will be held to determine the prized subscriber. The subscriber offering the highest discount within the allotted time will be declared the prized subscriber. In some groups, auctions are conducted via sealed tenders. These sealed bids are opened in the presence of group members during the auction, and the highest eligible bidder is declared the winner. If no bids are received, no subscribers are present, or no representatives are authorized, the prized subscriber will be selected by lot at the minimum discount.
A processing charge is applicable at the time of prize money release. As per government regulations, 12% GST will be levied on the Foreman Commission, effective from 1st July 2017.
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