Bank auction
tahir
(Querist) 06 May 2013
This query is : Resolved
Hello Team,
What happens if we submit tender money for auction but auction gets cancelled then within what time should bank return our money.
Thanks,
Tahir
Guest
(Expert) 06 May 2013
Not a legal issue. Only bank can tell.
tahir
(Querist) 06 May 2013
Thank You for the reply,
But in my case 1 month has expired and still money is with bank so i sthere notime limit withi whihc the bank has either to refund the tender money or have the auction date fixed.
Thank You.
Advocate M.Bhadra
(Expert) 06 May 2013
The auction process, however, has tight timelines within which the buyer needs to arrange the money to close the deal. So, this requires that you have deep pockets. Banks issue a public notice in newspapers about the proposed auction and invite bids.
The notice includes the details of the property, date, time and venue of the auction, reserve price, and earnest money deposit.
It also mentions the date on which interested parties can inspect the property before submitting their bids. Bidders must submit their applications to the bank quoting their bid amount which should not be less than the reserve price. Along with this, they must pay earnest money deposit which may be around 10 per cent of the reserve price.
The auction usually takes place after 30 days from the date of the public notice. In this period, the borrower may still pay the money due to the bank.
If the borrower settles the dues, the auction will not happen and your earnest money deposit will be returned. If the auction takes place and you do not win the bid, your earnest money deposit is returned. If you win the bid, you will have to pay around 25 per cent of the bid price (less the earnest money deposit) on the day of the auction. You need to pay the balance amount within the next 15 days or an extended period agreed between you and the bank.
If you win the bid but do not pay the required amount within the specified periods, you will lose the money paid earlier. So, walk this path only if you have got the funds ready to go the whole way. Banks may offer loans to acquire such properties. But given the tight timelines, you will have to make arrangements for a loan before the auction date.
tahir
(Querist) 06 May 2013
Sir,
Thank you for detailed reply.
Am from mumbai and had given money to an agent to buy on my behalf, do you know lawyer from mumbai who can represnet me in getting my money back, had paid Rs 8 lacs to agent but have statement from his firm that if they do not buy property on my behalf than they have to return the money, its been more than a month but still agents says to wiat for another 1 month i suspect he could be cheating me.
Thank You,
Tahir
prabhakar singh
(Expert) 06 May 2013
" but auction gets cancelled "MUST HAVE BEEN READ BEFORE SUCH A PROCEDURAL REPLY!
prabhakar singh
(Expert) 06 May 2013
It is your choice between two i know,one Mr.Sethi and the other Mr.VR SHROFF both of them can be traced in hall of fame of experts.
Devajyoti Barman
(Expert) 06 May 2013
You can apply for refund of money immediately else file case before the consumer forum.
Raj Kumar Makkad
(Expert) 07 May 2013
The auction rules must have contained the period of refund of such money. Follow those rules.
ajay sethi
(Expert) 07 May 2013
how did you hand over money to agent ? was it by cash or cheque?
did you obtain any receipt from agent ?
have you verified whether agent has deposited money for auction purposes?
make enquirers with the bank whether your money has been deposited
tahir
(Querist) 07 May 2013
Thanks,
Money paid by cheques and also got receipt which agent will return money if unsuccessfull in getting flat.
The agent says money has been deposited, but this happened in 2nd week of April, bank says auction was cancelled so new date they are going to fix in May end.
ajay sethi
(Expert) 07 May 2013
ok wait for some time but cross check whether money deposited by your agent
tahir
(Querist) 07 May 2013
Thanks,
The auction is supposed to be by cooperative-bank in mumbai,i will wait for some time & cross-check but how long can bank keep money without conducting auction.
Thanks,
Tahir
R.K Nanda
(Expert) 07 May 2013
send legal notice to bank to refund ur money.
Raj Kumar Makkad
(Expert) 07 May 2013
You should personally get written enquiry from the banker whether the alleged money is duly deposited in the relevant head in your name or not prior to deciding future course of action.
RAJU O.F.,
(Expert) 07 May 2013
As the auction was cancelled on the fixed day, you are entitled to get refund of EMD immediately and bank has to return it to you if you demand. If you wish to bid again for the same property in an auction within short period you may request the bank to retain the same as EMD for the subsequent auction.
c.p.s. ramachary
(Expert) 08 May 2013
I partly agree with Mr. O.F. Raju Expert. The bidder cannot allow the bank to retain the deposit as it may create a doubt in others if the bidder is in close touch with the bank. Further there may be a chance to enhance the reserve price in the next auction and the deposit amount depends upon the reserve price fixed. However in your case you have to call back the deposit since the auction is cancelled.
Guest
(Expert) 08 May 2013
You have not stated whether you applied for refund or not. In fact, refund of earnest money in a tender case is not automatic. You have to formally apply for refund.
tahir
(Querist) 09 May 2013
Have not replied for refund yet since agent is telling me its going to be held in May end
Guest
(Expert) 09 May 2013
When you go by the advice of some agent it is not understood, how your complaint about non-refund was justified to be posted here in any way.
When you have not initiated any action to ask for refund from the bank, you have done nothing except to waste time of experts without stating the appropriate background of the case.
c.p.s. ramachary
(Expert) 09 May 2013
Yes do not waste further time of experts on this subject query.
tahir
(Querist) 09 May 2013
Sirs,
Had asked for refund earlier but i was told the auction is going to be held soon so i didnt know what is the law relevnat to asking for refund so i put the query here, i will go by what Mr Ajay Sethi has said and will contacthim if any more queries.
Am gratefull to all experts who have replied for guiding me through, understanding the process better.
Thank You,
Tahir
Devajyoti Barman
(Expert) 09 May 2013
If auction is going to held soon it is advisable not asking for refund of money.
tahir
(Querist) 08 July 2013
Hello Sir,
Its 3 months now since i gave money to agent , in this period the auction got cancelled twice, agent says money is still with co-opertaive bank and they will return the money when the notice for next auction comes out.The amt 8 lakh was paid to the agent by me in cheque , the receipt was given to me,the agent filled the tender on his name and deposited the money with co-operative bank "The C.K.P.Co-operative Bank, Thane'.....the agent is assuring me that bank has to return the amt and it will do when next notice of auction comes out. Pls advise wht i can do at this stage.
