'E-auction properties hypothecated to banks'

'E-auction properties hypothecated to banks'
The Madras High Court has suggested that banks resort to e-auctioning of properties hypothecated to them. While dismissing a petition filed by a borrower, who opposed e-auctioning of properties, justices M Jaichandren and R Mahadevan of the Madurai bench of the court said, "E-auctioning is a small step taken towards adopting modern technologies in implementing procedures provided by law."

They stressed on the need to adapt to changes in the digital era. The judges said, "We are in the age of Facebook, YouTube and Twitter...Even though India might not have come of age to compete with advanced countries in use of digital technology, we are not far behind. There is a clear indication that we are moving towards the digital age," the bench said.

The country had not been utilising scientific knowledge and technology, to the optimum extent to improve the quality of life of the common man. The bench said the need of the hour was to adopt new technologies in functioning of various authorities and entities in the country. It favoured e-auction as it helped banks as well as their borrowers to greatly reduce unethical practices followed by "cartels and syndicates which have the capacity to undermine the value of the properties, brought for sale, by exerting undue influence".


Read more about: properties, eauction, banks
Story first published: Friday, August 1, 2014, 13:05 [IST]
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