Matex Net Advisor Desk:
Matex Net has brought a unique platform which provides complete information which are known to different respective authorities and maintains transparency as much as possible.
First of all, we should know about Non Performing Asset (NPA) and some major facts:
NPAs are assets that cease to generate income for lenders in the stipulated as well as extended period of time.
Such assets are loans or advances on which lenders generate income when a home loan borrower pays the interest and/or the principal amount component.
Lenders consider a loan as an NPA if borrower fails to pay the interest, and/or pay back the principal amount component for a period of more than 90 days.
The Demand Notice for a period of 60 days is sent to the borrower by the lender under Section 13(2) of SARFAESI Act, 2002; Lender takes Symbolic Possession and Physical Possession is also taken as the permission received from the respective Chief Metropolitan Magistrate (CMM) or District Magistrate (DM), if borrower fails to respond to the Notice the Demand Notice. This exercise generally takes 45 – 60 days;
Valuation of the Secured Asset is done by the approved Valuer and the Reserve Price is set;
E-Auction is conducted for sale of the asset after newspaper publication (English & Vernacular Language) is released within a period of 30 days under Section 13 (4) of SARFAESI Act, 2002;
When anybody finds interest in such asset, he/she should find out the followings before any transaction:
* It is almost EIGHT MONTHS since the asset has become NPA, following dues might be pending –
* Electricity Bills
* Gas/ Water Bills
* Society Maintenance Charges
* Municipality Taxes
Keeping all these in mind, these assets are sold in distressed value which is generally 10% - 50% lower than the market price through ‘AS IS WHERE IS BASIS’, ‘AS IS WHAT IS BASIS’ and ‘WHATEVER IS THERE IS BASIS’ under legal process as per SARFAESI Act, 2002.
To take part in the Auction (Online/ Offline) process, bidder has to deposit 10% of Reserve Price as the EMD (Earnest Money Deposit) along with KYC (PAN Card and Address Proof); 25% of the Highest Bid Amount (after adjusting the EMD Amount) has to be deposited by the Highest Bidder immediately or as instructed by the Authorised Officer of Auction Process and balance 75% of the Highest Bid Amount is deposited within 15 days;
The Authorised Officer issues ‘Bid Confirmation Letter’ as well as ‘Sale Certificate’ to the ‘Successful Bidder’ who becomes the approved Bidder in the Auction Process.
Depending on State-to-State or Union Territory (UT)procedure, the Registration is done either the ‘Sale Certificate’ or the ‘Sale Deed’ with a revenue charges of flat 7% (which may vary in state-to-state or UT) for male/ female or both;