Bajaj Finserv on March 13 has issued a public notice for auction of gold articles of Bajaj Finance (BFL). It notified defaulters that gold ornaments submitted at the time of availing the gold loan would be auctioned at the mentioned venues and dates from 10 am onwards.
Multiple accounts across 52 locations in the country have been mentioned. The move comes after these customers 'defaulted' on their loan repayments or 'failed to provide the required margin' despite repeated notices, the notice read.
The notice issued in newspapers said: "It is hereby notified by BFL to all concerned and the general public that gold ornaments submitted by customers to Bajaj Finance at the time of availing the gold loan, in the below-mentioned accounts will be auctioned on an "as is where is basis and as is what is basis" at below venue from 10.00 AM for below-mentioned loan accounts of customers who have defaulted in repayment of the loan amount or have failed to provide the required margin despite repeated notices."
Bidders are requested to make a cash deposit of Rs 25,000 as earnest money on the day of the auction. Earnest money deposit is an amount a buyer pays to show their genuine interest in purchase. Bidders are also required to carry a valid ID Card/PAN Card at the auction venue.
The complete terms and conditions (T&Cs) pertaining to this public auction have been posted online here. The notice states that submission of bid "is construed as a deemed acceptance to the said T&Cs."
Lenders usually undertake auctions when "push comes to shove". While this is the last resort, banks can rightfully take possession of the collateral and auction it to recover the loan amount. You can now invest in mutual funds with moneycontrol. Download moneycontrol transact app. A dedicated app to explore, research and buy mutual funds.
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