Regulation 33 (1) of the IBBI (Liquidation Process) Regulations, 2016 (Liquidation Regulations) provides that, “The liquidator shall ordinarily sell the assets of the corporate debtor through an auction in the manner specified in Schedule I.” Further, Clause (7) of Para 1 of Schedule I of the Liquidation Regulation provides that, “From a date to be notified through circular by the Board, the liquidator shall sell the assets only through an electronic auction platform empanelled by the Board.” Currently, the liquidators in the various liquidation process are selling 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. This practice leads to information asymmetry, as potential buyers have limited time to assess the value of the assets, often resulting in lower recovery rates. A centralised listing and auction platform where details of all assets under liquidation of CD are continuously available to the public provides an effective solution to these problems.
IBBI has collaborated with the Indian Banks’ Association (IBA) to facilitate the auction of assets through the eBKray platform which is presently owned and managed by PSB Alliance Private Limited (a consortium of 12 public sector banks). eBKray has been conducting auctions for assets mortgaged to public sector banks under the SARFAESI Act for the past five years.
PSB Alliance has developed a module within the eBKray platform to facilitate the listing and auction of assets under IBC. This centralized platform offers detailed information on corporate debtor assets, including photographs, videos, and geographical coordinates.
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 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 GCS, the entire CD would be listed on this platform.
The platform may be accessed by the prospective buyers at https://ebkray.in and FAQs and guide to use the platform are placed at https://ibbi.gov.in/en/home/psb-alliance.
Link – https://ibbi.gov.in/uploads/legalframwork/77e7f6034a0c4dab174712fbf00920a6.pdf
About the Author
