As, currently, the liquidators in the various liquidation process sell the assets through various auction platforms and the details of a company's assets are typically made public only at the time of the auction notice, which leads to information asymmetry, as potential buyers have limited time to assess the value of the assets, often resulting in lower recovery rates.
An effective solution would be a centralised listing and auction platform where details of all assets under liquidation of CD are continuously available to the public.
In an effort to address the challengers, vide its circular dated 29th October 2024, Insolvency and Bankruptcy Board of India, [IBBI] has informed that it has collaborated with the Indian Banks’ Association (IBA) to facilitate the auction of assets through the eBKray [now Baanknet.com] platform which is presently owned and managed by PSB Alliance Private Limited (a consortium of 12 public sector banks). eBKray [now Baanknet.com], has conducted auctions for assets mortgaged to public sector banks under the SARFAESI Act for the past five years.
It will be a single listing platform to host all assets being sold in liquidation cases. This platform will require liquidators to list all assets of the Corporate Debtor [CD] as mentioned in the Asset Memorandum, including comprehensive details such as the status of the attachment or lien, geographical coordinates, and the likely date of auction. For Going Concern sale [GCS], the entire CD can be listed on this platform.
Initially, the platform is deployed on a pilot mode. The platform will be rolled out and notified after it is improved based on the experience of usage. The Insolvency Professionals [IPs] can access the platform using their login details on the IBBI platform.
The platform supports a wide range of assets, including:
Real estate (land, buildings)
Plant and machinery
Vehicles
Inventory
Financial assets
Intellectual property
Entire businesses as going concerns
Not Readily Realizable Assets
This circular has come into force with effect from 01st November 2024. https://ibbi.gov.in//uploads/legalframwork/77e7f6034a0c4dab174712fbf00920a6.pdf
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