{"id":27841,"date":"2024-11-19T19:15:31","date_gmt":"2024-11-19T13:45:31","guid":{"rendered":"https:\/\/carajput.com\/blog\/?p=27841"},"modified":"2025-05-06T00:36:14","modified_gmt":"2025-05-05T19:06:14","slug":"ibbi-iba-to-launch-platform-ebkray-for-asset-liquidation","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/ibbi-iba-to-launch-platform-ebkray-for-asset-liquidation\/","title":{"rendered":"IBBI, IBA to launch Platform (eBKray) for asset liquidation"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Page Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69d2ab7bcce81\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #000000;color:#000000\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #000000;color:#000000\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69d2ab7bcce81\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/carajput.com\/blog\/ibbi-iba-to-launch-platform-ebkray-for-asset-liquidation\/#IBBI_IBA_to_launch_centralised_platform_eBKray_platform_for_asset_liquidation\" title=\"IBBI, IBA to launch centralised platform (eBKray platform) for asset liquidation\">IBBI, IBA to launch centralised platform (eBKray platform) for asset liquidation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/carajput.com\/blog\/ibbi-iba-to-launch-platform-ebkray-for-asset-liquidation\/#Highlights_of_IBA_and_the_IBBI_initiative\" title=\"Highlights of IBA and the IBBI initiative:\">Highlights of IBA and the IBBI initiative:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/carajput.com\/blog\/ibbi-iba-to-launch-platform-ebkray-for-asset-liquidation\/#Benefits_of_the_eBKray_Platform\" title=\"Benefits of the eBKray Platform: \">Benefits of the eBKray Platform: <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/carajput.com\/blog\/ibbi-iba-to-launch-platform-ebkray-for-asset-liquidation\/#Addressing_Existing_Challenges-_Current_Issues\" title=\"Addressing Existing Challenges- Current Issues:\">Addressing Existing Challenges- Current Issues:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/carajput.com\/blog\/ibbi-iba-to-launch-platform-ebkray-for-asset-liquidation\/#How_the_eBKray_Platform_Solves_These_Problems\" title=\"How the eBKray Platform Solves These Problems\">How the eBKray Platform Solves These Problems<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/carajput.com\/blog\/ibbi-iba-to-launch-platform-ebkray-for-asset-liquidation\/#Access_and_Resources_eBKray_Platform\" title=\"Access and Resources eBKray Platform \">Access and Resources eBKray Platform <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/carajput.com\/blog\/ibbi-iba-to-launch-platform-ebkray-for-asset-liquidation\/#Non-Compliant_Practice_Identified_on_EMD_collection_and_document_submission_during_liquidation_auctions\" title=\"Non-Compliant Practice Identified on EMD collection and document submission during liquidation auctions\u00a0\">Non-Compliant Practice Identified on EMD collection and document submission during liquidation auctions\u00a0<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/carajput.com\/blog\/ibbi-iba-to-launch-platform-ebkray-for-asset-liquidation\/#Mandated_Protocol_as_per_IBBI_Circular\" title=\"Mandated Protocol as per IBBI Circular:\">Mandated Protocol as per IBBI Circular:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/carajput.com\/blog\/ibbi-iba-to-launch-platform-ebkray-for-asset-liquidation\/#Immediate_Action_Required_by_IPs\" title=\"Immediate Action Required by IPs:\">Immediate Action Required by IPs:<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<figure id=\"attachment_11595\" aria-describedby=\"caption-attachment-11595\" style=\"width: 949px\" class=\"wp-caption alignnone\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-11595\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/01\/IBC-5-4-18.jpg\" alt=\"www.carajput.com; IBBI\" width=\"949\" height=\"653\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/01\/IBC-5-4-18.jpg 500w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/01\/IBC-5-4-18-300x206.jpg 300w\" sizes=\"(max-width: 949px) 100vw, 949px\" \/><figcaption id=\"caption-attachment-11595\" class=\"wp-caption-text\">www.carajput.com; IBBI<\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"IBBI_IBA_to_launch_centralised_platform_eBKray_platform_for_asset_liquidation\"><\/span><span style=\"color: #000080;\"><strong>IBBI, IBA to launch centralised platform (eBKray platform) for asset liquidation<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The eBKray platform is a crucial step toward modernizing the IBC&#8217;s liquidation framework. By addressing issues like fragmented processes, limited buyer access, and inadequate recovery rates, it ensures fairer, more efficient outcomes for all stakeholders. This reform not only supports creditors and buyers but also strengthens the integrity and effectiveness of India&#8217;s insolvency resolution framework.<\/p>\n<ul>\n<li>IBBI launch of the eBKray platform represents a transformative reform for the Insolvency and Bankruptcy Code (IBC), addressing critical challenges that have long hindered the efficiency of asset liquidation processes.<\/li>\n<li>eBKray platform, in collaboration with the Indian Banks&#8217; Association and the Insolvency and Bankruptcy Board of India, marks a significant step forward in streamlining the auction process for assets undergoing liquidation under the IBC.<\/li>\n<li>The IBBI circular mandating the use of eBKray for asset auctions comes into effect on November 1, 2024. Liquidators must comply by listing assets with complete details, ensuring readiness for auctions under this system.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Highlights_of_IBA_and_the_IBBI_initiative\"><\/span><span style=\"color: #000080;\"><strong>Highlights of IBA and the IBBI initiative:<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><strong>Centralized Platform for Asset Auctions<\/strong><\/p>\n<ol>\n<li><strong>Collaboration and Management:<\/strong>\n<ul>\n<li>Developed and managed by PSB Alliance Private Limited, a consortium of 12 public sector banks.<\/li>\n<li>Previously used for auctioning assets mortgaged to public sector banks under the SARFAESI Act.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Purpose and Deployment:<\/strong>\n<ul>\n<li>Initially rolled out in pilot mode with enhancements to follow based on usage feedback.<\/li>\n<li>Full implementation expected in later phases.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Key Features:<\/strong>\n<ul>\n<li>A centralized listing and auction platform for IBC assets.<\/li>\n<li>Details like lien\/attachment status, geographical coordinates, and auction timelines will be pre-listed.<\/li>\n<li>Accessible to potential buyers well in advance to enhance transparency and participation.<\/li>\n<\/ul>\n<\/li>\n<\/ol>\n<h2><span class=\"ez-toc-section\" id=\"Benefits_of_the_eBKray_Platform\"><\/span><span style=\"color: #000080;\"><strong>Benefits of the eBKray Platform: <\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ol>\n<li><strong>For Buyers:<\/strong>\n<ul>\n<li>Resolves information asymmetry by continuously hosting details of all assets under liquidation. Access to well-documented and continuously available asset information.<\/li>\n<li>Allows more time for valuation, leading to better price discovery.<\/li>\n<li>Ample time to make informed bidding decisions.<\/li>\n<\/ul>\n<\/li>\n<li><strong>For Creditors:<\/strong>\n<ul>\n<li>Increased transparency and efficiency through technology.<\/li>\n<li>Expected to maximize returns and reduce recovery delays.<\/li>\n<li>Higher recovery rates through better price discovery.<\/li>\n<li>Reduced delays, ensuring quicker resolution and distribution of proceeds.<\/li>\n<\/ul>\n<\/li>\n<li><strong>For Insolvency Processes:<\/strong>\n<ul>\n<li>Centralized system ensures wider participation and reduces duplication.<\/li>\n<li>Establishes greater trust in the insolvency process by reducing inefficiencies.<\/li>\n<li>Standardized procedures enhance confidence in the IBC framework.<\/li>\n<li>Aligns with international best practices for transparency and standardization<\/li>\n<\/ul>\n<\/li>\n<\/ol>\n<p><strong>Challenges in Current Liquidation Processes: <\/strong>The launch of the eBKray platform represents a transformative reform for the Insolvency and Bankruptcy Code (IBC), addressing critical challenges that have long hindered the efficiency of asset liquidation processes.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Addressing_Existing_Challenges-_Current_Issues\"><\/span><span style=\"color: #000080;\"><strong>Addressing Existing Challenges- Current Issues:<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li>Fragmented Platforms:\n<ul>\n<li>Assets are sold via disparate auction platforms.<\/li>\n<li>Lack of a unified system leads to inconsistent practices and restricted visibility.<\/li>\n<li>Fragmented auction platforms lead to limited visibility and participation.<\/li>\n<\/ul>\n<\/li>\n<li>Information Asymmetry:\n<ul>\n<li>Asset details are disclosed only during auction notices.<\/li>\n<li>Buyers have limited time for due diligence, reducing the potential for optimal bids.<\/li>\n<li>Late disclosure of asset details restricts valuation, causing lower recovery rates.<\/li>\n<\/ul>\n<\/li>\n<li>Inadequate Recovery Rates:\n<ul>\n<li>Limited bidder participation often leads to lower price discovery.<\/li>\n<li>Heavy haircuts for creditors are common due to poor realization of asset values. Heavy haircuts and undue delays are common.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"How_the_eBKray_Platform_Solves_These_Problems\"><\/span><span style=\"color: #000080;\"><strong>How the eBKray Platform Solves These Problems<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>A unified platform bridges these gaps, ensuring, Transparency, Wider market access, Better recovery outcomes for creditors<\/p>\n<ul>\n<li>Centralized Asset Listings: Provides a single, continuously updated repository for assets under liquidation. Details include lien\/attachment status, geographical coordinates, and auction timelines.<\/li>\n<li>Enhanced Transparency: Continuous availability of information empowers buyers with sufficient time for asset valuation. Reduces ambiguity, improving bidder confidence.<\/li>\n<li>Technology-Driven Efficiency: Advanced digital tools streamline the auction process, ensuring fair competition and smoother operations.<\/li>\n<li>Improved Market Reach: A unified platform attracts a wider pool of potential buyers, ensuring better participation.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Access_and_Resources_eBKray_Platform\"><\/span><span style=\"color: #000080;\"><strong>Access and Resources eBKray Platform <\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ol>\n<li><strong>Platform Access<\/strong>:\n<ul>\n<li>IBBI Portal Link: <a href=\"https:\/\/ibbi.gov.in\/en\/home\/psb-alliance\" target=\"_new\" rel=\"noopener\">PSB Alliance on IBBI<\/a><\/li>\n<li>eBKray Direct Access: <a href=\"https:\/\/ebkray.in\/\" target=\"_new\" rel=\"noopener\">eBKray Platform<\/a><\/li>\n<\/ul>\n<\/li>\n<li><strong>Guides and Documentation<\/strong>:\n<ul>\n<li>Listing Guide for Insolvency Professionals: <a target=\"_new\" rel=\"noopener\">Download (Updated 29.10.2024)<\/a><\/li>\n<li>Auction Guide for Insolvency Professionals: <a href=\"https:\/\/ibbi.gov.in\/uploads\/psb_alliance\/Auction%20guide%20for%20Insolvency%20Professionals%20(As%20on%2029.10.2024).pdf\" target=\"_new\" rel=\"noopener\">Download (Updated 29.10.2024)<\/a><\/li>\n<li>Auction Guide for Bidders: <a href=\"https:\/\/ibbi.gov.in\/uploads\/psb_alliance\/Auction%20guide%20for%20Bidders%20(As%20on%2029.10.2024).pdf\" target=\"_new\" rel=\"noopener\">Download (Updated 29.10.2024)<\/a><\/li>\n<li>FAQs for Listing and Auction Platform: <a href=\"https:\/\/ibbi.gov.in\/uploads\/psb_alliance\/FAQ%20for%20PSB%20Alliance%20(As%20on%2029.10.2024).pdf\" target=\"_new\" rel=\"noopener\">View FAQs (Updated 29.10.2024)<\/a><\/li>\n<\/ul>\n<\/li>\n<li><strong>Support<\/strong>:\n<ul>\n<li>For assistance or queries related to the eBKray platform, you can email the designated support team mentioned on the IBBI portal.<\/li>\n<\/ul>\n<\/li>\n<\/ol>\n<p>Swatantra Kumar singh Partner Rajput Jain and associates at <a href=\"http:\/\/www.carajput.com\">www.carajput.com<\/a> : Highlights the reform as a long-awaited step in improving recovery rates. Expects better price discovery and wider market access due to the platform\u2019s transparency and efficiency.<\/p>\n<p>The eBKray platform is a crucial step toward modernizing the IBC&#8217;s liquidation framework. By addressing issues like fragmented processes, limited buyer access, and inadequate recovery rates, it ensures fairer, more efficient outcomes for all stakeholders. This reform not only supports creditors and buyers but also strengthens the integrity and effectiveness of India&#8217;s insolvency resolution framework.<\/p>\n<h2 data-start=\"359\" data-end=\"408\"><span class=\"ez-toc-section\" id=\"Non-Compliant_Practice_Identified_on_EMD_collection_and_document_submission_during_liquidation_auctions\"><\/span><span style=\"color: #000080;\"><strong data-start=\"366\" data-end=\"408\">Non-Compliant Practice Identified on EMD collection and document submission during liquidation auctions\u00a0<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>strict adherence to the IBBI Circular dated 28th March 2025, which mandates the exclusive use of the Baanknet auction platform for EMD collection and document submission during liquidation auctions from 1st April 2025 onwards. IPs have been mentioning EMD submission in the name of the Corporate Debtor\u2019s liquidation account via Demand Draft or NEFT\/RTGS, in contradiction to the IBBI directive. <a href=\"https:\/\/ibbi.gov.in\/uploads\/legalframwork\/2025-03-28-235256-5phy7-b74b8337a8b16af1af694dc969a6d1f3.pdf\"><span data-olk-copy-source=\"MessageBody\">IBBI Circular dated 28th March 2025<\/span><\/a><\/p>\n<h3 class=\"\" data-start=\"592\" data-end=\"641\"><span class=\"ez-toc-section\" id=\"Mandated_Protocol_as_per_IBBI_Circular\"><\/span><span style=\"color: #000080;\"><strong data-start=\"598\" data-end=\"641\">Mandated Protocol as per IBBI Circular:<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul data-start=\"642\" data-end=\"1087\">\n<li class=\"\" data-start=\"642\" data-end=\"782\">\n<p class=\"\" data-start=\"645\" data-end=\"782\">Auction Platform: All auctions (notices issued on or after 1 April 2025) must be conducted exclusively via the BAANKNET platform. All EMDs must be submitted only through the BAANKNET platform\u2014no direct bank transfers or DDs to liquidation accounts are allowed. Declarations under Section 29A of IBC and other relevant bidder documents must be uploaded via BAANKNET only.<\/p>\n<\/li>\n<\/ul>\n<h3 class=\"\" data-start=\"1094\" data-end=\"1138\"><span class=\"ez-toc-section\" id=\"Immediate_Action_Required_by_IPs\"><\/span><span style=\"color: #000080;\"><strong data-start=\"1101\" data-end=\"1138\">Immediate Action Required by IPs:<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul data-start=\"1139\" data-end=\"1777\">\n<li class=\"\" data-start=\"1139\" data-end=\"1300\">\n<p class=\"\" data-start=\"1142\" data-end=\"1300\">Audit Past Notices\/Process Docs: Identify any auction notices or documents published after 1 April 2025 that mention alternate EMD submission methods. Promptly publish corrections to align the EMD and document submission instructions with the IBBI Circular. IP must ensure all future auction templates and communications:<\/p>\n<ul data-start=\"1526\" data-end=\"1668\">\n<li class=\"\" data-start=\"1526\" data-end=\"1587\">\n<p class=\"\" data-start=\"1528\" data-end=\"1587\">Clearly state that EMD is to be paid only via BAANKNET.<\/p>\n<\/li>\n<li class=\"\" data-start=\"1591\" data-end=\"1668\">\n<p class=\"\" data-start=\"1593\" data-end=\"1668\">Remove any reference to the corporate debtor\u2019s liquidation account for EMD.<\/p>\n<\/li>\n<\/ul>\n<\/li>\n<li class=\"\" data-start=\"1669\" data-end=\"1777\">\n<p class=\"\" data-start=\"1672\" data-end=\"1777\">Internal Controls: Implement a compliance checklist or SOP to avoid recurrence of non-compliance.<\/p>\n<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>IBBI, IBA to launch centralised platform (eBKray platform) for asset liquidation The eBKray platform is a crucial step toward modernizing the IBC&#8217;s liquidation framework. By addressing issues like fragmented processes, limited buyer access, and inadequate recovery rates, it ensures fairer, more efficient outcomes for all stakeholders. This reform not only supports creditors and buyers but &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10081],"tags":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/27841"}],"collection":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/comments?post=27841"}],"version-history":[{"count":5,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/27841\/revisions"}],"predecessor-version":[{"id":29252,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/27841\/revisions\/29252"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=27841"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=27841"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=27841"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}