All assets being sold in liquidation cases will now be listed on a single centralised electronic platform, from 1 November 2024, the Insolvency and Bankruptcy Board of India (IBBI) has announced.
This new platform will be available on a pilot basis on the existing eBKray platform, which carries details about the corporate debtor assets. A consortium of 12 public sector banks called PSB Alliance owns the eBKray platform.
Bringing details of all assets under liquidation to the public on a centralised listing on the new electronic platform aims to address multiple operational issues. The IBBI intends to address issues such as information asymmetry due to dispersed sources of information, which ultimately lead to lower recovery rates.
The platform would require liquidators to list the assets under liquidation (mentioned in the asset memorandum) and include all necessary details.
The circular states that after it is released, insolvency professionals must list all assets of the asset memorandum on the centralised electronic platform within seven days of its submission.
The IBBI has collaborated with the Indian Banks’ Association to bring about the centralised listing, which would offer detailed information including the status of attachment/lien, photos, videos, geographical co-ordinates and the date of the auction. This aims to bring enhanced transparency and efficiency, while also increasing bidder participation, and maximising returns and outcomes for parties involved.
