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Procedure of Sale of Property through AUCTION.

The authorized officer before effecting sale of the immovable property 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 following methods:--

(a) By obtaining quotations from the persons dealing with similar secured assets or otherwise interested in buying the such assets; or

(b) By inviting tenders from the public;

(c) By holding public auction; or

(d) By private treaty.

The authorized officer shall serve to the borrower a notice of thirty days for sale of the immovable secured assets PROVIDED that if the sale of such secured asset is being effected by either inviting tenders from the public or by holding public auction, the secured creditor shall cause a public notice in two leading newspapers; one in vernacular language having sufficient circulation in the locality by setting out the terms of sale, which shall include,--

(a) The description of the immovable property to be sold, including the details of the encumbrances known to the secured creditor;

(b) The secured debt for recovery of which the property is to be sold;

(c) Reserve price, below which the property may not be sold;

(d) Time and place of public auction or the time after which sale by any other mode shall be completed;

(e) Depositing earnest money as may be stipulated by the secured creditor;

(f) Any other thing which the authorized officer considers it material for a purchaser to know in order to judge the nature and value of the property.

Every notice of sale shall be affixed on a conspicuous part of the immovable property and may, if the authorized officer deems it fit, put on the web-site of the secured creditor on the Internet.

(8) Sale by any method other than public auction or public tender shall be on such terms as may be settled between the parties in writing.