Legal Question in Banking Law in India

10.03.2013

Dear Sir / Madam,

(CDA, Pune, Maharashtra)

Public auction is a more authentic method for purchase of a property under the SARFAESI Act. But all the present risks and encumbrances on the property are transferred to the buyer.

Regards,

FCA Prashant Chavan

Mumbai

(You can also mail me for any further on-line advice at [email protected])

Courts have held that public auction is the most transparent way of enforcing the security under the SARFAESI Act. If in the auctions, it does not get bidders, in a subsequent auction, the bank can itself bid the property at the then upset price, if the property has potential to be sold later for a good price.

Public Auction is the best.