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September - 2014 - Special issue > Company of the Year - e-Auction

Foreclosureindia.com: The Pacesetter in the e-Auction Industry

Poulomi Mukherjee
Wednesday, October 8, 2014
Poulomi Mukherjee
There can be umpteen reasons behind the accumulation of unsold properties with banks/financial institutions like lack of publicity, awareness among the general public, value added services, expertise to branch-level staff and non-core activities. Apart from these, lack of marketing efforts & options, inappropriate reserve price and time constraint also play a pivotal role in making a heap of unsold properties. A research based on the last four years' non-performing assets and their disposal trends showcase a game changing aspect on the disposal of non-performing assets to disseminate various kinds of NPAs (non-performing assets) and bring back the funds into the bank. In accordance to the SARFEASI or DRT act of the Indian Ministry of Finance, banks are adopting e-Auctioning for selling some of the non-performing assets. Acting as a scaffold between banks and investors, Foreclosureindia.com creates wide publicity of auction properties through e-Auctioning while guiding the interested investor about the auction process to ensure greater participation of investors in bank auctions leading to NPA clearance of the banks.

Foreclosureindia.com offers properties at a reserve price which is 20-30 percent cheaper than the market price and is fixed by taking into consideration the distressed price of the property along with the market price. Apart from that, the company also arranges for an inspection of the property according to the investors' convenience along with extending a helping hand to obtain the pre-approval for a housing loan. Along with transparency and credibility, Foreclosureindia.com also ensures a fast and legal commencement of the entire transaction process. "The rate of success of selling of the properties through Bank Auctions varies from 40-60 percent depending on the city, market sentiment, political situations and several others," quotes Yerneni Bhargav, Managing Partner & CEO, Foreclosureindia.com.

Foreclosureindia.com publishes property details ranging from Rs.1 lac to Rs.256 crore while conglomerating all the auction details and enlisting properties for public & private sector banks along with housing financial institutions and asset reconstruction companies. "The website is on its way to fulfill its mission of creating a market for auction of properties in India by educating more and more people who were oblivious to the auction property market and giving them an alternative to the conventional properties," adds Yerneni.

As a business, the looming challenge in front of Foreclosureindia.com was raising funding in order to take the business to the next level. But the company swept through it with the help of Angel Investors who are helping it raise funds. Foreclosureindia.com envisions scaling up & accelerating all of its pivotal service areas to provide more technology implementation like development of apps & additional features, improvement of the website and many more. Furthermore, apart from a team expansion, the company foresees starting buyer services along with improving its e-Auction services and an empanelment with another 25 banks.

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