We are bidding for a commercial office property in Mumbai to be auctioned by a PSU Bank under SARFAESI.
The Property belongs to a Limited Company. This company has GST and Income Tax Outstanding liablities.
As per "VERBAL" assurances from the bank, the new purchaser is not liable for these statutary liablities of the original owner of property if the purchase is done through Bank Auction under SARFAESI.
Can we get some opinion on this matter.
Check the auction 'terms and conditions' released by Bank. Or get its copy before any bid.
Thanks for the quick response
In the latest advt for auction, bank mentions as below
Details of Encumbrences known to Bank - "Not Known"
In an auction notice paper advt last year for same property, bank had mentioned outstanding amount under below 3 categories
1) Society Dues - XXX
2) Property Tax - XXX
3) GST - XXX
So after several failed auction attempts, bank has decided to remove the amounts from their Sale Notice and instead mentioned "Not Known".
NOT KNOWN means the liability whaterver it be lies over the bidder.
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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