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MSTC E-Auction in Kerala Government Departments

Mandatory Legal Framework for Disposal of Scrap, Excavated Earth & Unserviceable Articles

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1. Purpose of This Article

This article is written for:

• Government Officers responsible for disposal of Government assets
• Contractors / Traders intending to participate in Government e-auctions

Based on a continuous series of Finance Department Government Orders (2012–2025), this article explains why disposal through approved e-auction platforms—primarily MSTC Limited—is mandatory, not optional.

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2. Continuous Government Policy (No Break Since 2012)

The Government of Kerala has consistently mandated that:

All Government-owned materials having monetary value shall be disposed of only through transparent e-auction platforms approved by Government.

This policy has been:

• Introduced in 2012
• Reinforced in 2014
• Renewed in 2018 & 2021
• Expanded in scope in 2025

There has been no relaxation or dilution of this requirement at any stage.

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3. What Materials Are Covered (Very Important)

The following are treated as Government Property and shall not be disposed of locally or entrusted to contractors:

• Excavated earth / soil from public works
• Demolition debris from old buildings, bridges, markets
• Scrap steel, wood, pipes, shutters
• Unserviceable machinery and stores
• Condemned Government vehicles

➡️ All the above must be sold only through approved e-auction platforms such as MSTC.

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4. What Is NOT Permitted

The following practices are irregular and audit-objectionable:

• Allowing contractors to take excavated earth free of cost
• Local negotiation or quotation for scrap disposal
• Adjustment of material value in RA bills
• Departmental “decision” without conducting e-auction

Such actions are routinely objected to by:

• Accountant General (Audit)
• Finance Inspection
• Vigilance authorities

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5. Why MSTC Protects Government Officers

Conducting disposal through MSTC ensures:

• Competitive price discovery
• Digital bid records
• Audit-ready documentation
• Protection from personal liability
• Compliance with Finance Department orders

Using MSTC is the safest administrative option.

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6. Important Note for Contractors & Buyers

Government Departments must auction:

• Earth & soil
• Demolition scrap
• Old steel & machinery
• Vehicles

👉 Only registered MSTC buyers can participate.

For contractors, recyclers, and traders, MSTC registration opens access to:

• Legally auctioned Government materials
• Statewide opportunities
• GST-compliant transactions

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7. Upcoming Articles in This Series

• PART-1: Step-by-Step MSTC Auction Procedure for Government Offices
• PART-2: How Contractors Register & Bid on MSTC

📞 Need Help?

At EverQ , you can quickly get:

• Online Registration Procedure for MSTC ( Buyer/Seller)
• DSC renewal
• Auction training & support

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