TaxTMI 
TaxTMI 
MODE OF SALE
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....the liquidator shall complete an auction process within thirty-five days from the issue of public notice for auction. (1D) ^12[****] ^13[(1E) The liquidator shall provide to the prospective bidder, access of the assets under auction to facilitate their inspection and due diligence.] (1F) A prospective bidder in an auction process shall deposit earnest money deposit at least up to two days before the date of auction.] (2) The liquidator shall prepare a marketing strategy, with the help of marketing professionals, if required, for sale of the asset. The strategy may include- (a) releasing advertisements; (b) preparing information sheets for the asset; (c) preparing a notice of sale; and (d)....
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.....] (6) The liquidator shall provide all assistance necessary for the conduct of due diligence by interested buyers. ^7[(7) 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.] (8) If the liquidator is of the opinion that a physical auction is likely to maximize the realization from the sale of assets and is in the best interests of the creditors, he may sell assets through a physical auction after obtaining the permission of the Adjudicating Authority. The liquidator may engage the services of qualified professional auctioneers specializing in auctioning such assets for this purpose. (9) An auction shall be transparent....
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....liquidator shall present the auction results, details of highest bidder, and the due diligence conducted on it to the ^22[****] committee ^23[****]. (12C) The liquidator shall declare the highest bidder as the successful bidder or reject such bid, after ^24[the approval of the committee with voting share of sixty-six per cent.] under regulation 31A. (12D) If a bidder is found ineligible, the earnest money deposited by him shall be forfeited. (12E) In case the highest bidder is found ineligible, ^25[the liquidator may, with the approval of the committee with voting share of sixty-six per cent.], declare the next highest bidder as the successful bidder after following the same process as provided under clause (12A....
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....he event that an auction fails at such price, the liquidator may reduce the reserve price up to seventy-five per cent of such value to conduct subsequent auctions." 2. Substituted vide NOTIFICATION No. IBBI/2019-20/GN/REG047 dated 25-07-2019 before it was read as, "(12) On the close of the auction, the highest bidder shall be invited to provide balance sale consideration within fifteen days of the date when he is invited to provide the balance sale consideration. On payment of the full amount, the sale shall stand completed, the liquidator shall execute certificate of sale or sale deed to transfer such assets and the assets shall be delivered to him in the manner specified in the terms of sale." 3. Inserted vide&n....
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....price under clause (4A), the reserve price in subsequent auctions may be further reduced by not more than ten percent at a time.]" 10. Substituted vide Notification No. IBBI/2023-24/GN/REG112 dated 12-02-2024 before it was read as, "(12) On the close of the auction, the highest bidder shall be invited to provide balance sale consideration within ninety days of the date of such demand: Provided that payments made after thirty days shall attract interest at the rate of 12%: Provided further that the sale shall be cancelled if the payment is not received within ninety days." 11. Inserted vide Notification No. IBBI/2023-24/GN/REG112 dated 12-02-2024 12. Omitted vide F. No. IBBI/2024-25/GN/....
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....dated 01-06-2026 w.e.f. 02-06-2026 before it was read as, "Provided that in cases where the reserve price of the failed auction of the asset was fixed as per the valuation under sub-regulation (1) of regulation 35, the liquidator may, on the advice of the consultation committee, reduce the reserve price up to twenty-five percent, once during the process." 21. Inserted vide F. No. IBBI/2026-27/GN/REG151 dated 01-06-2026 w.e.f. 02-06-2026 22. Omitted vide F. No. IBBI/2026-27/GN/REG151 dated 01-06-2026 w.e.f. 02-06-2026 before it was read as, "consultation" 23. Omitted vide F. No. IBBI/2026-27/GN/REG151 dated 01-06-2026 w.e.f. 02-06-2026 before it was read as, "under regulation 31A" ....