Published date | 22 December, 2020

E-auction by SBI for properties- Should you invest?

Kanika Gupta Shori, COO and Co-Founder at Square Yards, India’s predominant real estate platform, has opined that the bank will only have possession of the property which is of a symbolic nature. Post sale, the buyer may have to tackle possession related aspects in scenarios where the property has been rented out and has not been vacated yet by the tenants. Buyers of properties are usually perceived as investors and cannot also expect relief at consumer courts if they wish to file cases for construction quality lapses and so on. Shori stated that auctioned properties mean that buyers will not be legally qualified as consumers since no actual sale is taking place. They will hence be unable to file cases legally against builders for poor quality of construction and receive compensation from the court likewise.

State Bank of India, the biggest lender in India, will be holding its e-auction for properties on the 30th of December, 2020, covering both commercial and residential properties. These are mortgaged properties from defaulters and the bank will be auctioning the same for recovery of dues. While people are hugely attracted to these properties for the chance to buy prime real estate at a comparatively lower price in a location where new supply is almost non-existent and to get a fair discount or better deal on the transaction, pitfalls cannot be avoided. 


Firstly, there is no unified database of auctioned properties that can be referred to while one cannot accurately predict the highest bid price for a property in the auction. This may make it tougher to arrange funds while one cannot be guaranteed of building an asset at a price which is more comfortable as per experts. While the bank may have done its basic legal due diligence, they are not responsible directly for physical issues faced by the property, encumbrances and so on. Post being auctioned, these affairs will have to be covered by the buyer itself. 


Kanika Gupta Shori, COO and Co-Founder at Square Yards, India’s predominant real estate platform, has opined that the bank will only have possession of the property which is of a symbolic nature. Post sale, the buyer may have to tackle possession related aspects in scenarios where the property has been rented out and has not been vacated yet by the tenants. Buyers of properties are usually perceived as investors and cannot also expect relief at consumer courts if they wish to file cases for construction quality lapses and so on. Shori stated that auctioned properties mean that buyers will not be legally qualified as consumers since no actual sale is taking place. They will hence be unable to file cases legally against builders for poor quality of construction and receive compensation from the court likewise. 


Hence, auctioned properties, while coming at a sizable discount and seeming very attractive, should be carefully assessed for risks before buying. You should conduct your due diligence thoroughly before venturing into the e-auction process. 


SBIAuction Property Auction Auction News Real Estat News Real Estate Hussle Kanika Gupta Shori

Vital home makeover tips from ...

Vases may be considered for th...

27 September, 2021

New Square Yards OOH Campaign ...

India foremost real estate eco...

15 September, 2021

Women entrepreneurs tap Facebo...

COVID-19 has disrupted numerou...

15 September, 2021

Inspirations, multitasking and...

Kanika has followed in Indra N...

03 September, 2021

Should home buyers cash in on ...

This is already putting pressu...

01 July, 2021

Young Industry Leaders Feted a...

Some other winners included Ak...

09 July, 2021

Kanika Gupta Shori Makes It To...

Square Yards Founder and COO, ...

29 May, 2021

Changer Makers & Innovators Ce...

The list of winners included t...

01 February, 2021

Ms. Kanika Gupta Shori Present...

Kanika Gupta Shori, is now a p...

23 October, 2019

Square Yards Recognized As Red...

Square Yards has been named a ...

11 October, 2019

Time is limited! How do you wa...

Most of us spent first 25 year...

24 February, 2020

Global citizenship is it even ...

A global citizen is a person w...

05 February, 2020

My Journey to the top of the w...

As someone rightly said, best ...

10 December, 2019

Why women are paid less ? - - - - -

November 19th, is celebrated a...

19 November, 2019

While we try to teach our chil...

"Children are the best teacher...

14 November, 2019

My Journey to the top of the w...

As someone rightly said, best ...

10 December, 2019

Why women are paid less ? - - - - -

November 19th, is celebrated a...

19 November, 2019

While we try to teach our chil...

"Children are the best teacher...

14 November, 2019

How Square Yards Is Scaling By...

Thanking Inc42 Media for featu...

27 June, 2019

Women with Male Co-Founders do...

Live Mint published an article...

18 June, 2019

Related News

Square Yards is a technology-enabled, global real estate aggregator and India’s largest player for primary residential real estate. It’s subsidiary Square Capital is one of the largest marketplace for secured mortgages in India. Square Yards platform offers an integrated consumer experience & covers the full real-estate journey from search, discovery to research, transactions, home loans and post-sales service – fully integrating buyers to an extensive network of 500+ partner real estate developers, and 90+ banks & NBFCs. Square Yards is led by accomplished professionals, ex-bankers, and Ivy school alumni and is backed by the competence of more than 2500 employees in 30 cities and ten countries.