Union Bank of India, Bank of Baroda and Yes Bank have issued e-auction sale notices for the sale of immovable assets under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. The online auction will be conducted on a dedicated platform, where interested bidders must register themselves beforehand to qualify. Properties sold at these auctions will be offered on a an "as is what is," "whatever there is," and "without recourse basis". Therefore, the rules of caveat emptor apply. Interested bidders are required to register on the designated e-auction platform, and meet the specific eligibility criteria to participate.
On the 10th of August 2023, between 11 am and 4 pm, the Union Bank of India has declared an E-Auction Sale Notice for the sale of immovable assets under the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, along with Rule 8(6) of the Security Interest (Enforcement) Rules, 2002. The auction will be conducted online on the platform www.mstcecommerce.com, and interested bidders can participate to potentially acquire real estate properties and government land.
E-auction in India has emerged as an efficient and transparent process, widely utilized by various government agencies and departments to facilitate online auctions for the sale of assets, goods, and services. The primary objective is to attract a larger pool of participants, promote healthy competition, and ensure fair pricing for the assets on offer. This method of auctioning has gained popularity due to its ability to eliminate manual intervention, providing an unbiased and recorded platform for all bids and proceedings.
Interested bidders are required to register on the designated e-auction platform, where they will need to meet specific eligibility criteria and possibly submit the necessary documents and a deposit to participate effectively. The bidding process adheres to pre-established timelines and is conducted on dedicated government portals or third-party e-auction platforms, ensuring a seamless and standardised procedure.
Transparency remains a key advantage of e-auctions in India, as the entire process, including bid records and transactions, is electronically recorded, leaving no room for subjective interference. The winning bid at the end of the auction period secures the asset, and the successful bidder must complete the payment within the stipulated timeframe.
The Union Bank auction features a diverse selection of properties, with prices ranging from 22 lakhs to 14 crores, providing prospective buyers with a wide array of options. Among the 20 properties listed on the portal, 9 are as commercial properties, while 11 are residential properties. These offerings encompass various sought-after locations, including Andheri, Lokhandwala, Bandra, Thane, and Nariman Point, catering to the preferences and requirements of a discerning clientele.
Earlier this week, Bank of Baroda held an e-auction for an array of properties ranging from 20 lakhs to 5 crores. The properties were located in various segments including coveted locations such as Bandra and Parel as well as up and coming neighbourhoods such as Nallasopara. Yes Bank too held an auction of the 1st day of this month for a single flat valued at 3 crore rupees.
For individuals and investors seeking a potential investment opportunity or aiming to purchase property at a discounted rate in a specific location, these bank auctions are a great opportunity. However, the properties are usually offered on a an "as is what is," "whatever there is," and "without recourse basis". This means that it is the responsibility of the buyer to do his or her due diligence before purchasing the property. The buyers does not have any legal claim over the other party.
All sales agreements entered into by a buyer and seller contain rights and responsibilities for both parties. However, a sale "without recourse" , “as is what is” "whatever there is," means a sale without liability. This means the buyer accepts all risks associated with the purchase. The buyer has "no recourse" against the seller if he or she goes on to incur any problem with the property. Further, the seller is not obligated to compensate the buyer for any damages, defects, or legal issues. Therefore, the rules of caveat emptor apply.
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