What is the SARFAESI Act?
The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 enables eligible secured creditors to enforce security interests in certain cases without first approaching a court or tribunal.
Bank auction listings commonly arise after a secured creditor takes measures against a defaulted secured asset. The sale notice and the bank's terms remain the primary documents for every auction.
How a bank auction generally works
- The authorised officer issues a sale notice describing the asset, reserve price, EMD, inspection window and auction date.
- Interested bidders independently review the property and documents.
- Eligible bidders submit the required registration and EMD before the deadline.
- The auction takes place on the bank's designated platform.
- The successful bidder completes payment under the sale terms before receiving the sale certificate.
Checks to complete before bidding
- Read the complete auction notice and corrigenda.
- Confirm physical or symbolic possession status.
- Inspect title documents, encumbrances and pending statutory dues.
- Visit the property during the inspection window.
- Verify payment deadlines, taxes and registration costs.
Important disclaimer
This guide is general educational information, not legal, financial or investment advice. AuctionDekho does not replace independent due diligence. Consult the authorised officer and qualified professional advisers before participating.