IBBI Mandates Exclusive Use of Baanknet Auction Platform for Liquidation Process
- Apr 3
- 2 min read
The Insolvency and Bankruptcy Board of India (IBBI), through its Circular No. IBBI/LIQ/84/2025, dated 28th March 2025, has made it mandatory for all Insolvency Professionals (IPs) to exclusively use the Baanknet auction platform (formerly eBKray) for conducting auctions in liquidation proceedings. This directive builds upon an earlier circular issued on 10th January 2025, which required that all unsold assets in ongoing liquidation cases be listed on the Baanknet platform by 31st March 2025 and that, from 1st April 2025, all auctions be conducted exclusively through this platform.
Further, in alignment with the IBBI (Liquidation Process) (Amendment) Regulations, 2025, notified on 29th January 2025, the obligation for liquidators to conduct due diligence on prospective bidders before the auction has been removed. Instead, bidders are now required to self-certify their eligibility by submitting necessary documents, including a declaration under Section 29A of the Insolvency and Bankruptcy Code, 2016 (IBC), through the electronic auction platform.
The circular specifies the following key directives for insolvency professionals managing liquidation cases:
Exclusive Use of Baanknet:
All auction notices issued on or after 1st April 2025 must utilize the Baanknet platform for asset sales in liquidation.
Mandatory Disclosure in Auction Notices:
Prospective bidders must submit all required documents, including a declaration of eligibility under Section 29A of the IBC, via the Baanknet platform.
The Earnest Money Deposit (EMD) must be deposited through the Baanknet platform.
If a bidder is found ineligible after submission, their EMD shall be forfeited.
This move aims to enhance transparency, efficiency, and compliance in the liquidation process by ensuring a centralized and standardized mechanism for asset sales. The use of Baanknet will facilitate real-time tracking, wider bidder participation, and reduced procedural irregularities, thereby strengthening the integrity of liquidation auctions under the IBC framework.
For further clarifications, stakeholders can refer to FAQs and guidance documents available on the IBBI website or reach out to the designated support team. This directive, issued under Section 196(1) of the IBC, reinforces IBBI’s commitment to streamlining the liquidation process and safeguarding the interests of creditors.
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