There are 3 steps undertaken as per the approved policy
1) the recipient of the gift can retain them by paying 50% of the assessed value. If they don’t, then
2) They are offered to civil & military officers thru auction with the full value as the base price. If they don’t sell, which they never do, then
3) It’s offered to the general public.
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The reason given for not auctioning them straight away is that these are gifts given by foreign dignitaries and it could be a diplomatic disaster if they know that their gifts to our dignitaries are being sold off to general public.
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The gifts of aesthetics or any historical significance are displayed at important state buildings/offices. Only those which are important due to any commercial value are put up for auction & the money generated is deposited in the state account.
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The present round of auction is being done after many years!