If auction proceeds exceed enforcement cost, excess goes to:

Section 38 of the PERA Act 2024 outlines the procedure for dealing with moveable encroachments and the associated financial implications. When an Enforcement Officer (EO) seizes goods or vehicles due to non-compliance with a Removal Notice/Order, the items may be auctioned to recover enforcement costs.

The law ensures that the primary objective is recovery of enforcement costs, covering all expenses incurred during the process, including manpower, storage, transportation, and administrative charges. However, if the auction proceeds exceed these costs, the excess is not retained by the State or the EO but must be returned to the illegal occupier.

This provision serves multiple purposes:

1. 
   

   Fairness – Prevents EO or government authorities from unjustly profiting from seized goods.

   
   


2. 
   

   Transparency – Ensures all financial transactions related to enforcement actions are properly accounted for.

   
   


3. 
   

   Encouraging compliance – Signals that the law balances enforcement with protection of individual rights.

   
   

The Hearing Officer (HO) or relevant authority oversees the process, ensuring the auction is conducted lawfully, and the excess funds are calculated accurately before returning to the occupier. This process reinforces legal accountability, protects the interests of both the State and the individual, and ensures enforcement actions are conducted in a fair, transparent, and procedural manner.

In conclusion, under Section 38 of the PERA Act 2024, when auction proceeds from confiscated items exceed enforcement costs, the excess is returned to the illegal occupier, maintaining fairness, accountability, and proper enforcement of the law.