Legal Question in Banking Law in India

auction under sarfaesi act 2002

Hello,

i am a barrower of allahabad bank and i could not pay my export loan hence bank has auction my property. In auction there are only one bit came and they sold on that bid.

Offcourse bit was on higher price than reserve price.

We want to know can bank auction only on 1 bit. Or they need minimum 3 bids.

Rahul


Asked on 7/11/09, 7:15 am

5 Answers from Attorneys
J. Radhakrishnan independent Practice

Re: auction under sarfaesi act 2002

Even if there was one bidder who has bid at a higher price to the upset/reserve price, the Bank is perfectly in order in selling the same. It is not necessary under law that there should be more than one bid.

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Answered on 7/11/09, 9:54 am
Rohini Kumar Tenneti R.K.1080 LEGAL SERVICES

Re: auction under sarfaesi act 2002

Yes the bank performed legally.

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Answered on 7/11/09, 11:22 am
Sudershan Goel India Law Offices of Sudershan Goel - Advocate

Re: auction under sarfaesi act 2002

The auction may be closed on one bid. However, you may still get the property back if you make a better offer backed by sufficient earnest money.

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Answered on 7/11/09, 1:46 pm
Sudershan Goel India Law Offices of Sudershan Goel - Advocate

Re: auction under sarfaesi act 2002

Duplicate question. already answered.

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Answered on 7/11/09, 1:46 pm
Pranav Desai PD Legal & Associates

Re: auction under sarfaesi act 2002

Yes, the auction is legitimate. Bank can sell your property based on 1 bid.

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Answered on 7/13/09, 3:26 am


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