The Insolvency and Bankruptcy Board of India (IBBI) has mandated that all auctions for the sale of assets under the liquidation process must be conducted exclusively on the eBKray auction platform starting April 1, 2025.

This directive aims to streamline the auction process, enhance transparency, and improve recovery rates in liquidation cases.

Additionally, the insolvency regulator has instructed insolvency professionals (IPs) to list all unsold assets in ongoing liquidation cases on the platform by March 31, 2025. 

This move is expected to bring greater efficiency and accountability to the liquidation process by consolidating asset listings and simplifying access for potential buyers, say experts.

Anjali Jain, Partner at Areness Law, a law firm, said that considering the overwhelming response received on the eBKray platform, the optional beta phase of the platform has now been amplified for compulsory conduct of auctions for sale of assets on all liquidation processes. 

“It is a step forward for making India a preferred distressed-asset investment space and this brings additional benefits like singular platform for sourcing opportunities, easy reference checks, avoidance of potential legal and valuation traps etc.,“ Jain said.

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The indicative shift in auction trend might not admittedly assure better recoveries to creditors as the distressed asset takers are though comparatively inclined to Indian market, but robust legal, regulatory structures, well defined processes, legal responsibilities and timelines etc. are still lacking. 

“With more such active initiatives like these, we can expect that global players would start working actively in the space for acquisition of Indian distressed assets at discounted prices, provided Indian professionals including management/ turnaround/ legal etc and special funds like PE/debt/SSFs synchronise effectively to align with distressed Industry requirements”, she added.

About eBKray

Now rebranded as the Bank Asset Auction Network, eBKray is an advanced property listing and e-auction platform designed for banks and lending institutions. It facilitates the recovery of non-performing asset (NPA) loans by enabling the efficient sale of distressed assets through digital auctions.

By mandating the use of this platform, the IBBI seeks to address challenges associated with the manual and fragmented auction processes currently in place. The digital-first approach of eBKray is expected to boost the visibility of listed assets, attract a wider pool of bidders, and ensure fair pricing through competitive bidding.

Siddharth Srivastava, Partner at Khaitan & Co, said this move will likely increase participation from bidders and give more transparency to the process. 

A common auction platform will not only address issues regarding information asymmetry but also ensure fair and competitive bidding leading to higher recoveries, he said.

According to the IBBI, 210 assets have already been listed on the eBKray platform, with 25 auctions conducted or scheduled.

Based on the platform’s initial usage, further improvements will be implemented to enhance its functionality. 

With this move, the insolvency regulator aims to further its objectives of creating an efficient and accountable insolvency ecosystem.

Earlier, in October 2024, IPs were directed that they shall exclusively list the details of all the unsold assets in respect of the ongoing liquidation processes on the eBKray platform and that they may utilise the eBKray auction platform for the sale of assets in respect of ongoing cases for auctions.

Implications for stakeholders

The exclusive use of eBKray marks a significant shift in how insolvency-related auctions are conducted. For insolvency professionals and liquidators, this mandate means adapting to a unified, tech-driven system for asset sales. Banks and financial institutions, on the other hand, stand to benefit from improved recoveries and a more transparent asset disposal mechanism.

The listing of unsold assets from ongoing liquidation cases will also help resolve bottlenecks in the liquidation process. By creating a comprehensive and centralised database of distressed assets, the eBKray platform will enable quicker decision-making for buyers while reducing delays in asset resolution.

Driving efficiency in asset recovery

The adoption of eBKray aligns with the broader goal of leveraging technology to streamline insolvency processes in India. With a robust interface designed for scalability and ease of use, the platform ensures compliance with regulatory requirements while fostering greater trust among stakeholders.

This initiative also underscores IBBI’s commitment to enhancing India’s insolvency ecosystem by promoting accountability, minimising delays, and improving outcomes for creditors. The move to digitise and centralise auctions represent a significant step forward in addressing the challenges of distressed asset recovery.

Game-changer 

IBBI’s mandate to use the eBKray platform exclusively for liquidation asset auctions is a game-changer for India’s insolvency framework. By standardising the auction process and embracing a tech-enabled solution, the regulator is paving the way for more efficient, transparent, and equitable asset recoveries, say economy watchers.

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