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For the understanding of general public, we have tried to gather some of the common question, which may arise while looking for auctioned bank properties.

What is an e-Auction?

An e-Auctions is the negotiation conducted via an online platform where Suppliers get the possibility of improving their proposals based on market feedback (e.g. rank in negotiation) and are considered to be the most transparent way of conducting negotiations. Basically, there are two types of Auctions. 1. Forward Auction 2. Reverse Auction.

When should Forward and Reverse Auction be used?

Forward Auction - Forward Auctions are sales oriented auctions, where Auctioneers are trying to sell their products or services. In a forward auction, the buyer bids on the seller's item and the prices of the item increases by a fixed increment amount during the auction and in a forward Auction the highest bid price during the Auction is the one which wins. For example, when a Bank or a Debt Recovery Tribunal (DRT) hold an auction to sell a property or an asset - it will use Forward Auction mechanism.

Reverse Auction - Reverse Auctions are Purchase oriented auctions, where Auctioneers are trying to purchase products or services. In a reverse auction, the seller bids on the Buyer's item and the prices of the item decreases by a fixed decrement amount during the auction. In a Reverse Auction the lowest bid price during the Auction is the one which wins. For example, if a bank (or any organization) wants to buy computer systems or even transportation services, it can hold a reverse auction to procure goods and services at the best possible price.

Who is a Bidder?

Anyone be an executive of a company or an individual wishing to bid or participate in an online Auction event is a Bidder. On Bank or DRT Auctions, a Bidder will be bidding in the Auctions he has been qualified for. By responding in an Auction, the Bidder commits to buy or sell items at prices submitted by him during Auction.

Who is an Authorised Officer?

The secured creditor may appoint any officer not less than the chief manager of a public sector bank or equivalent or any other person or authority as specified by the Board of Directors/Trustees as the case may be.

Can an NPA account be regularized?

Yes, provided the outstanding amount as on the date of issuance of notice u/s 13(2) is paid within time.

What assets are covered under SARFAESI?

Any asset, movable or immovable, given as security whether by way of mortgage, hypothecation or creation of a security interest in any other form except those excluded u/s 31 of the Act.

Can the guarantors’ personal property be proceeded against under SARFAESI?

Only those property given as security can be proceeded under the provisions of SARFAESI Act.

Can the secured creditor sell the secured asset immediately upon possession being taken?

Upon possession being taken, the secured creditor has to give a mandatory 30 days notice to the borrower prior to the date of sale.

Is the secured creditor compulsorily required to sell the secured asset?

No, he may lease out or assign the secured asset as provided u/s 13(4).

Is the property purchased under SARAESI action clear and free from encumbrances?

Any asset sold under SARFAESI action is sold on an as is where is and as is what is basis unless specified otherwise. Sale under SARFAESI is governed by the terms and conditions of sale forming part of the sale process. But as regards the title , generallaw of the country itself is clear that “ You cannot pass a title better than you own”, therefore the bank will be responsible for any title defect found later and your money will be safe.

What would happen to the excess amount in case of surplus after sale of the secured asset?

The owner of the secured asset shall be entitled to the surplus amount.

Is the sale certificate required to be registered?

Yes As per the applicable law.

Are the Auction Events Private or public? How confidential is the Auction data?

Each Auction is a highly confidential event conducted between the Auctioneer and a set of qualified Bidders on the Bank or DRT Auctions platform. No outsider can view any aspect of an Auction event without proper authentication by Auctioneer. And even then, a qualified Bidder can only view details of his own bids.Therefore all data like Items' specifications, pricing, Bidders' information and bid data are all confidential and available to respective Auctioneers only.

How can a user register with Bank or DRT Auctions?

To participate as a Bidder, Registration is a simple process at Bank or DRT Auctions on Go to registration form. Select "Register as Individual or Organization" and fill out all required details. Go through User Agreement & Privacy Policy and click on the 'Register' button. It is a simple registration form with minimum details for identification and security. Go ahead, take a look and register.