IBBI partners with IBA to launch platform for asset liquidation auctions, effective November 1

The Insolvency and Bankruptcy Board of India (IBBI) has partnered with the Indian Banks’ Association (IBA) to utilize the eBKray platform for auctioning assets. This centralized platform will enhance bidder participation by providing detailed asset information and streamlining liquidation processes. Effective from November 1, 2024, the initiative aims to increase transparency and returns for creditors while improving outcomes for bidders.
The Insolvency and Bankruptcy Board of India (IBBI) has issued a circular announcing a collaboration with the Indian Banks’ Association (IBA) to facilitate the auction of assets through the eBKray platform.

The eBKray is a centralized platform offering detailed information on corporate debtor assets, including photographs, videos, and geographical coordinates. The platform aims to increase bidder participation, streamline operations, and maximize returns for creditors. Additionally, it seeks to improve outcomes for bidders by enhancing transparency and efficiency through advanced technology. “Managed by PSUs leveraging their extensive knowledge in selling liquidation assets, this is a great initiative that is paving the way for a single platform that will host all assets being sold under liquidation processes, making it simple for prospective investors to access and participate actively in sales,” said Saloni Kothari, Group General Counsel, BDO India.

The platform is currently owned and managed by PSB Alliance Private Limited, a consortium of twelve public sector banks.

The IBBI has directed the IPs handling the liquidation processes to list the details of all the unsold assets in respect of the ongoing liquidation processes on the eBKray platform; and the assets within 7 days of submission of the asset memorandum to the Adjudicating Authority in respect of liquidation processes commencing on or after this circular.

The IBBI further directs IPs to use the eBKray auction platform for the sale of assets in all ongoing cases on or after this circular.

This will no doubt help increase value, drive up sales, create transparency, and ultimately, be easier to monitor for the regulators.

Source:- ET money