E-auction works legally under SARFAESI ACT and is conducted transparently by all authorized organizations
- Base price or Reserve price is declared by the authorities
- Bid usually starts at the Base Price. No one can start the bid lesser than the Base Price
- MBI – Minimum Bid Increment is announced on the property details page. Bid should be increased by adding the MBI along with the property value
- There is a duration for every auction and bidding will be done throughout the bidding duration
- Highest bidder will win the bid at last
EMD – Earnest Money Deposit is the amount is reserved by bank to buyer and is usually 10% of the property value that you need to pay before the auction starts.
Yes, Money that you paid as an EMD will be adjusted in your last payment, if you win the bid. If you don’t win the bid, you will be refunded.
Every financial institution follows their own terms and conditions for which you have to refer the Bid Documents of the concerned property and mostly to pay EMD, you can use either Demand Draft or NEFT/RTGS as payment mode.
You can bid for multiple properties and for all that you have to submit required bidding documents along with EMD amount to be paid.
Yes, Every time when you participate in an E-auction, you must pay an EMD amount as in earlier
You should deposit the payments as per the terms and conditions. Even if you win the auction and you couldn’t do your payment on time, you will lose your ownership. You will be forfeited against the EMD paid.
No, once you done your EMD and enter into the auction, you cannot be withdrawn. Note: Please read the terms and conditions of the institution, sale documents of the property and bidding documents for clarity before you submitthe proposal.
Forward Auctions are sales oriented auctions where auctioneers sell products and services. In this type of auction buyer bids for any item or property and the price will increases by the Fixed Increment and the highest bidder of the auction will win at last. Reverse Auctions are purchase oriented auctions where auctioneers purchase products and services. In this type seller will bid for his item and the amount will decreases once the auction starts, herein lowest bid will win.