Security and privacy have become crucial factors in auction design. Various schemes to ensure the safe conduction of sealed bid auctions have been proposed recently. We propose a secure sealed bid auction protocol. We introduce a new standard of privacy for auctions, that prevents extraction of bid information despite any collusion of participants. Present cryptographic protocol which is the realization of an electronic auction being the component of the e-government or e-commerce system. Our protocol provide non-reputation and correctness.