Centralized Electronic Listing and Auction Platform for the Sale of Assets under Liquidation Process

Recent IBBI circular dated October 29, 2024, introduces the PSB Alliance eAuction Portal[1], a centralized electronic platform developed within the eBKray system, to streamline the auctioning of assets under the liquidation process. The platform is managed by PSB Alliance Private Limited, a consortium of public sector banks, which has successfully conducted SARFAESI-related auctions for five years. This new initiative aims to enhance the efficiency, and accessibility of the asset disposal process under the Insolvency and Bankruptcy Code (IBC).

The platform may be accessed by the prospective buyers at: https://ebkray.in

FAQs and guide to use the platform at https://ibbi.gov.in/en/home/psb-alliance

The PSB Alliance eAuction Portal, is being navigated by IBBI in partnership with the Indian Banks’ Association (IBA), introduces a centralized, efficient, and transparent auction process for assets under liquidation. This platform[2] is a step towards addressing long-standing challenges in asset liquidation, such as fragmented listings and information asymmetry, which have previously impacted the valuation and timely sale of corporate debtor assets.

Steps for Insolvency Professionals (IPs) on the Portal

• Listing: IPs start by logging in through the IBBI system. They add liquidation assignments and access the ‘Listing Auction’ form to submit detailed company and asset information. This includes uploading financial statements, adding addresses for asset locations, and indicating auction timelines.
• Managing Assets: IPs can add, edit, or delete asset information as needed. They can also upload multimedia content (images, videos) and asset-related documents, which are made accessible to potential buyers.
• Creating Auctions: From the dashboard, IPs initiate auctions by setting rules such as reserve price, earnest money deposit (EMD) requirements, and bid increments. They can upload auction-specific documents and designate inspection dates for prospective buyers.
• Auction Process: During the auction, the portal provides IPs with real-time bidding data while maintaining participant anonymity. IPs can manage pre-qualification submissions, evaluate bids, and finalize the auction outcome.

• User Verification: Both buyers and IPs undergo KYC verification, ensuring secure and verified interactions.
• Pre-qualification: To participate, buyers must submit eligibility documents by specified dates, ensuring only qualified bidders can join.
• Asset Visibility: Listed assets are continuously available for public viewing, with comprehensive details to attract more qualified buyers.
• EMD Refunds: For non-winning bidders, the platform automates EMD refunds, while the highest bidder’s EMD is directly credited to the liquidation account.

The platform promises to increase bidder participation and asset visibility, reduce transaction times, and facilitate higher recoveries. Through a single, consolidated auction portal, it also helps IPs meet regulatory timelines, simplifies the user experience, and promotes a fairer competitive bidding process.

Initially, the platform will operate in a pilot mode, allowing IBBI and the PSB Alliance to optimize its functionalities based on user feedback. This phased approach ensures adaptability and enhancement based on practical experiences, with full deployment expected after the pilot phase.

The newly launched eAuction Portal represents offers Insolvency Professionals (IPs) and potential buyers critical features such as comprehensive asset information, improved bidder confidentiality, and structured pre-qualification procedures.

We trust you will find this an interesting read. For any queries or comments on this update, please feel free to contact us at insights@elp-in.com or write to our authors:

    Mukesh Chand, Senior Counsel – Email – mukeshchand@elp-in.com

[1] https://ibbi.gov.in/en/home/psb-alliance

[2] https://ibbi.ebkray.in/eauction-ibbi/home