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A wonderful and affordable opportunity has emerged for people who want to build their personal residence or make a safe real estate investment in Varanasi (Kashi), the holy city of religion, spirituality and rapidly developing modern infrastructure. Open e-auction is being conducted for a prime residential plot located just 6.2 kilometers away from Shri Kashi Vishwanath Temple and close to the strategic connectivity corridor of National Highway-31 (NH-31). In this public auction being executed by the financial institution under SARFAESI Act, the base i.e. reserve price of the plot is only ₹37.36 lakh has been fixed. In the last few years, due to the rejuvenation of Kashi Vishwanath Dham Corridor, Ring Road Phase-2, Babatpur Airport Highway expansion and proposed ropeway projects, land prices in the prime areas of Banaras have been skyrocketing. In such a situation, getting a bank auction plot with clear title in the range of ₹ 37 lakh, just a few minutes away from the main city and the National Highway, is being considered a very attractive opportunity for both investors and end-users.
The biggest USP of this property is its geographical location. The price of any residential or commercial land in Varanasi is determined by its accessibility to Shri Kashi Vishwanath Temple, major Ganga ghats, Cantt Railway Station and highway network:
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Just 6.2 km from Kashi Vishwanath Temple: It takes only 15 to 20 minutes in normal traffic to reach the main Dham of Baba Vishwanath and Dashashwamedh Ghat, which provides a serene residential environment away from the inner city hustle and bustle.
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Direct connectivity with National Highway-31 (NH-31): NH-31 connects Ghazipur, Ballia and Bihar as well as connects directly to the city’s Outer Ring Road network. Through this, one can easily go towards Lal Bahadur Shastri International Airport (Bawatpur) and Chandauli-Prayagraj Highway without getting stuck in the traffic jam of the city.
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Developed Social Infrastructure: Reputed schools, super specialty hospitals, local markets and all the facilities of daily needs are available within a radius of 2 to 3 kilometers of the plot.
At present, plots are being sold by private colonizers and builders in the areas under Varanasi Development Authority (VDA) and adjacent to NH-31 at prices ranging from Rs 4,000 to Rs 6,000 per square foot.
This plot is being auctioned through public e-auction by the banking institution under the recovery of a defaulted loan account. According to financial law, the main objective of the bank is to recover its loan dues and not to earn profits. Therefore, the reserve price of bank auction properties is determined by independent government valuers based on prevailing circle rates and distressed asset standards, which is generally 20% to 35% lower than open market asking rates. The starting price of ₹37.36 lakh offers a safe budget option for middle-class buyers.
The entire process of participating in Bank Auction is now transparent and conducted through online (e-Auction):
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Registration on the portal: Interested bidders are required to register as a bidder for free by visiting the official e-auction portal (like ibapi.in, bankeauctions.com or mstcecommerce) with their valid PAN card, Aadhar card and bank account details.
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Earnest Money Deposit (EMD): To participate in the auction, 10 percent of the reserve price (₹ 37.36 lakh) i.e. approximately ₹3,73,600 It is mandatory to deposit the earnest money (EMD) in the nodal account of the bank before the due date through online NEFT/RTGS.
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Online Bidding Process: On the scheduled auction day and time, registered users enter their bids from computer or mobile screen. Bidding progresses in multiples of a fixed incremental value (e.g. ₹10,000 or ₹25,000).
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Selection of successful bidder: After the stipulated time limit expires, the person who makes the highest bid is declared the winner. If you do not win the bid, your deposited EMD amount is automatically refunded to your original bank account within 48 to 72 hours without any deduction.
Under the SARFAESI Act, 2002, the successful buyer who wins the auction has to follow strict payment rules:
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On the day of auction or the next day: Bidder is required to deposit 25% of his final bid (which includes 10% EMD already deposited) immediately.
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Remaining 75% amount: The remaining 75 percent amount will be paid after the Sale Confirmation Letter issued by the bank. within 15 days (or within a maximum of 90 days with the specific written permission of the Bank).
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Sale certificate and filing-dismissal: As soon as the full payment is made, the bank issues the ‘Sale Certificate’ of the property. On the basis of this certificate, registration is done by paying stamp duty in the Sub-Registrar Office and mutation is done in the name of the buyer in the Municipal Corporation or Revenue records without any legal dispute.
Even though the ownership of land is considered secure in a bank auction, investors must take some important precautions keeping in mind the principle of ‘as is where is basis’ before bidding:
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Physical vs Symbolic Possession (Possession Type): Check the bank notice whether the bank has ‘physical possession’ of the property or only ‘symbolic possession’. In properties with physical possession, possession is given immediately and there are no hassles.
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Site Visit (Physical Inspection): During the inspection window given by the bank, visit the spot and match the boundary of the plot, width of the road, electricity-water poles and actual measurements with the revenue map.
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Inquiry into dues: If there is any old house tax or sewer tax outstanding from the Local Development Authority (VDA) or Municipal Corporation, get this information in writing from the Recovery Officer of the concerned bank.
Located adjacent to the National Highway in Varanasi and within close proximity of the temple, this property is a great opportunity for those who want to build their dream home in the religious city or are looking for a safe investment in land for huge capital appreciation in the future.