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State Bank of India (SBI) is one of the largest public sector banks in India. SBI, like any other bank, has the power to recover its dues by selling the assets pledged as security for the loan. This is where the SARFAESI Act comes into the picture. In this article, we will discuss SBI Auction under SARFAESI Act, including the meaning of SARFAESI, how it works, and what you need to know if you are a borrower or a buyer.
What is SARFAESI Act?
SARFAESI stands for the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. This act was passed to help banks recover their dues from defaulting borrowers. The act allows banks to auction the assets pledged as security for the loan in case of non-payment of dues. This act is applicable to all banks, including SBI.
Latest SBI eauction Properties: https://www.eauctionsindia.com/bank/state-bank-of-india
How does SBI Auction under SARFAESI Act work?
Under SARFAESI Act, banks like SBI have the power to take possession of the assets pledged as security for the loan. After taking possession of the assets, the bank can auction them to recover its dues. SBI sends a notice to the borrower before taking possession of the assets. The borrower has 60 days to repay the dues and get back the possession of the assets. If the borrower fails to repay the dues within the given period, the bank can auction the assets.
SBI auctions the assets through public auction. The auction is advertised in leading newspapers and on the bank's website. The auction is open to all bidders, including the borrower. The highest bidder wins the auction, and the bank uses the auction proceeds to recover its dues.
What do you need to know if you are a borrower?
If you are a borrower who has defaulted on the loan, you should know that SBI has the power to take possession of the assets pledged as security for the loan. However, SBI can only take possession of the assets after sending a notice to the borrower. The borrower has 60 days to repay the dues and get back the possession of the assets.
If you are a borrower who wants to participate in the auction, you should know that the auction is open to all bidders, including the borrower. You can participate in the auction and buy back your assets by paying the highest bid amount.
What do you need to know if you are a buyer?
If you are a buyer who wants to participate in the auction, you should know that the auction is open to all bidders. You can participate in the auction by submitting your bid in the prescribed format. You should also know that the assets are sold on an "as is where is" basis, and the bank does not give any warranty or guarantee for the assets. Therefore, it is advisable to inspect the assets before participating in the auction.
Conclusion
SBI Auction under SARFAESI Act is a legal process that allows the bank to recover its dues from defaulting borrowers. If you are a borrower who has defaulted on the loan, you should know that SBI has the power to take possession of the assets pledged as security for the loan. If you are a buyer who wants to participate in the auction, you should know that the auction is open to all bidders, and the assets are sold on an "as is where is" basis.
