Sunil/Kumar

1. How do we bid? Is it online like eBay (login every day and increase bid till the auction end date) or by going to the location on a particular day (like they show in movies)?
==> It's entirely online.

2. I see there are 2 fees mentioned on the site: Rs. 100 as auction fees, Rs. 1 ...

I think you can have a look at Nirali Silent square range - http://www.niralisinks.com/silent_square_range.html . It appears to be sound proof - but not sure whether they use rubber or some other material.

No, even the direct allotee will get the khata. However, the next buyer will have to give it back to bda while applying for khata transfer. So, at any point in time, there can ever be only one khata (which will be in the name of latest buyer).