Corporate News

Firstpost : Physical auctions are dead: expect 1 lakh realty e-auctions this year

India’s commercial banks are expected to conduct over one lakh e-auctions to sell properties of non-performing assets ( If any borrower fails to re-pay the loan installments continuously over a period of time then that particular account and the asset relating to that account becomes a non-performing asset) during FY13-14 as the ministry of finance has made it mandatory for all banks to move from physical auction to the e-auction route, said, an online portal focused on resolution of stressed assets.

The portal expects residential, agricultural, commercial and industrial properties to be sold through the e-auction route, with the first two accounting for the largest number of transactions.

Reuters Any interested party from India or even abroad can register themselves under the RBI regulations and participate in an e-auction unlike the physical auction system where the interested parties have to travel to the venue where it is going to take place. Banks may fix the minimum price at which the property will be sold at 20-25 percent lower than the going market rate, which could translate into a bargain buy for bidders. Also, since they are auctioned by banks, the title to these properties would likely be clear.
Says, DK Jain, CMD of Atishya Group, owner of told Firstpost, “E-auctions offer multiple advantages like lower cost, greater participation, save time and allows better price realization for banks.”