Recovery suit
Querist :
Anonymous
(Querist) 10 January 2012
This query is : Resolved
respected Sir,
I want to know what should be reserve price in an auction by bank
ajay sethi
(Expert) 10 January 2012
depends upon valuation of the immoveable property in question .
V R SHROFF
(Expert) 10 January 2012
Usually the Loan balance, and about 90% of market Value of the property. whichever is less.
Querist :
Anonymous
(Querist) 10 January 2012
sir in my case the loan amount is 355807 rs. then what is the reserved price for the auction
Deepak Nair
(Expert) 10 January 2012
On the basis of Mr.Shroff's comment, if this amount is less that the market value, then this will be the base price. otherwise the value of the property.
Deepak Nair
(Expert) 10 January 2012
Dear Shroff sir,
Kinldy rectify if i am incorrect.
Querist :
Anonymous
(Querist) 10 January 2012
is there any citation relating to this matter? with thanx
V R SHROFF
(Expert) 10 January 2012
Bank is interested inn recovery of their money, whatever extra they get will be returned to you.
In one Borivali Flat case, Bank Loan bal wsa 21 Lakh, & Bank Reserve Price was 25 Lakh (Adding Auction Charges, News Paper and Legal) My Friend Purchased it for 45 Lakh.
In your case it may be 5 Lakh. [bank is deciding factor]
Querist :
Anonymous
(Querist) 10 January 2012
respected Sir,
in my case mortgaged property against the home loan rs. 350000/- sold out by the bank only for rs. 1,15,000/-. now what is the remedy for me?
V R SHROFF
(Expert) 10 January 2012
Before they transfer to auctioneer, Pay entire amt.
bank Official are usually hand in gloves, and take their cut of 20-40%
If Open Auction, you should have offered thru your frd.
Tell me is it in your Possession, ?
Can you introduce a Tenant XYZ, and prove he live there for last 5 yesr, and pay you rent of Rs. 25 p.m and you collected Deposit of Rs. 2,00,000/- and Let him File a RAE suit, and get quickly a Court Court That he cannot be evicted. Let Bank Sell Ownership, and keep possession with you??
Let him get order to refund your money of 2L, keeping 3 months rent Rs. 75/- with Owner, if Bank or Next Purchaser? Can You do it Fast??
Devajyoti Barman
(Expert) 10 January 2012
It depends upon the court to fix any reserve price or not.
prabhakar singh
(Expert) 10 January 2012
Yes! the reserve price is fixed by recovery officer/tribunal executing the decree.
V R SHROFF
(Expert) 10 January 2012
Prabhakar Singh Saab is always offering correct and relevant, reliable details,
The Q here is what is the formula??
how do they calculate?
In Mumbai, & Thane, Market price declared by Govt, for each area, each floor, each line of Road, for shop/ flat/ plot are declared every year wef 1 jan.
I do not know where our ANO had property, and how they calculate it's valuation.
Querist :
Anonymous
(Querist) 10 January 2012
Sir, for example value of the property is Rs. 100000/- . what is the reserve price?
prabhakar singh
(Expert) 10 January 2012
At DRT for execution procedure laid down in THE INCOME-TAX (CERTIFICATE PROCEEDINGS) RULES, 1962 applies which by its rule 18 talks about the reserve price as follows"18. Reserve price:-
It shall be competent for the Tax Recovery Officer to fix a reserve price in respect of any property, other than agricultural produce, to be sold and order that any bid shall be accepted only on condition that it is not less than the said reserve price."
The rule does not lay down any formula.
Raj Kumar Makkad
(Expert) 11 January 2012
There are various considerations for the bank while deciding the reserve price for the auction like value of the recovery to be effected, current market price, overhead expenses, demand and supply rule etc.
Deepak Nair
(Expert) 11 January 2012
Now the query is sufficiently advised by the experts.
Devajyoti Barman
(Expert) 12 January 2012
You are repeating the same question. You are already told that the court would fix the reserve price at its own discretion.
prabhakar singh
(Expert) 13 January 2012
An important addenda.......++++++++++++++++
If the sale has to take place by authorized officer under proceeding by bank under THE SECURITISATION AND RECONSTRUCTION OF FINANCIAL ASSETS AND ENFORCEMENT OF SECURITY INTEREST ACT, 2002,then under rules
framed by name THE SECURITY INTEREST ENFORCEMENT RULES, 2002,it has been provided by rule 8(5)that before effecting the saleof the immovable property referred to in sub-rule (1) of rule 9, the authorised officer shall obtain valuation of the property from an approved valuer and in consultation with the secured creditor, fix the reserve price of the property and may sell the whole or any part of such immovable secured asset by any of the methods provided there in.
Querist :
Anonymous
(Querist) 13 January 2012
thanx i got my ans.
DEFENSE ADVOCATE.-firmaction@g
(Expert) 10 January 2012
