Gold Loan - Terms and Conditions for Auction

Terms and Conditions for Auction

1. The reserve price below which the Gold Jewellery/ Coins will not be sold is 90% of the market rate as on the date of auction.
2. The intending purchasers shall submit /send their bid quoting the price offered by them in a sealed cover to the ‘authorised official’ as referred at the time of auction.
3. Bids which are not duly sealed will be summarily rejected.
4. The sealed covers containing bid shall reach the authorized official before Prescribed time on auction date.
5. Once the bidding process is completed, the sealed bid envelopes submitted by each bidder will be opened on the same day. After review, the highest bidder will be declared as winning bidder, provided the winning bid is not less than 90% of the market value as on the auction date.
6. On receipt of communication from the Bank regarding winning of Bid, the winning bidder is liable to pay the approved bid amount plus applicable GST and other applicable charges/taxes on the same day the winner is declared. However, Bank at its sole discretion may permit deferment to the next working day for payment of bid amount with applicable charges, taxes etc.
7. The winning bidder shall take the delivery of the Gold Jewellery/ Coins/from the respective branches of the Bank /places by signing the delivery letter, within 2 days of auction
8. If the 1^st bidder doesn’t make payment of the bid amount in the prescribed timeline, Bank may at its sole discretion accept the bid offered by the 2^nd winning bidder where the bid shall not be less than 90% market value as on auction date. In that case, all the procedures such as issuance of winning letter will be followed.
9. The Bank or/and its Authorized officer reserves the right to modify the terms and conditions of payment of bid amount.
10. All payments shall be made by way of Demand Draft drawn in favor of The Federal Bank Ltd. payable at …………………………….(respective branch)/or through RTGS/NEFT funds transfer.
11. The bids offering price below the Reserve Price mentioned above will be rejected.
12. The Bank or/and its Authorized official has the absolute right to accept or reject any bid including the highest bid or adjourn / postpone the public auction without assigning any reason. The decision of the authorized official/Bank shall be final.
13. The buyer should satisfy himself/herself/itself as to the purity and weight of the Gold Jewellery/ Coins before participation in the auction.
14. If any of the dates mentioned above happens to be a Bank holiday, the very next Bank working day will be reckoned for that particular event and the next event/events will automatically get adjourned to the next Bank working day

General Terms & Conditions

1. The sale of gold Jewellery/ coins through Auction shall be on “As is where is”, “As is what is” basis. As such, the sale is without any kind of warranties and indemnities. It shall be the sole responsibility of the successful bidder to inspect and satisfy themselves about the purity, quality and specifications of gold Jewellery/ coins before purchasing the same.
2. Gold Jewellery/ coins once handed over to the successful bidder shall not be taken back by the Bank under any circumstances and  the Bank shall have no liability of whatsoever nature regarding the gold  Jewellery/ coins sold or handed over /delivered to the  successful bidder.
3. The gold Jewellery/ coins put up for auction are those pledged by the customers with the Bank as security for availing gold loans and subsequently put to auction by the Bank as loan accounts of the said customers have become delinquent. The Bank therefore have every right to sell the gold  Jewellery/ coins to the successful bidder. The payment of the bid amount and other taxes, costs and charges shall be made only through RTGS/NEFT/Intra Bank Fund Transfer/ Demand Draft. Any payment in the form of Cheque, Cash etc., other than through RTGS/NEFT/Intra Bank Fund Transfer shall not be accepted by the Bank.
4. The Bank shall not entertain any claims/complaints regarding the gold Jewellery/ coins once the gold auction is completed and the gold Jewellery/ coins are delivered to the successful bidder .
5. The successful bidder shall be deemed to have unconditionally accepted all the terms and conditions of auction of the gold Jewellery/ coins and also the terms and conditions of this Bid confirmation letter.
6. The Bank shall release/hand over the gold Jewellery/ coins to the successful bidder only after receiving the full bid amount together with all applicable taxes, fees and duties.
7. In the event that any tax, duty, levy, or other charge is imposed or demanded by any statutory authority in connection with this bid, whether at present or in the future, the same shall be solely borne by the Successful Bidder. The Bank shall not be liable for any such charges under any circumstances.
8. If the Successful Bidder fails to comply with any of the Terms and conditions contained in this Bid Confirmation Letter and/or the terms and conditions of   Auction or if any statement/representations/confirmations  made by the Successful Bidder are incorrect or if there is delay or default on the part of the successful bidder in making payment of the bid amount , taxes , duties etc.,  the bank shall have the right  to cancel the bid and  forfeit the amount, if any  paid  by the Successful Bidder. In such cases, the Bank will be entitled to dispose of the gold Jewellery/ coins in any manner the Bank may deem fit including to re-auction the gold Jewellery/ coins and the bank may be entitled to exercise their right to debar the successful Bidder from participating in future auctions and the defaulting bidder shall not raise any claim/dispute in this regard.
9. The Successful Bidder shall be bound by the regulations of the local authority, body, whether statutory or otherwise as may be applicable with regard to the Auction of gold Jewellery/ coins and purchase of gold Jewellery/ coins in Auction.
10. An employee or a blood relative of an employee or a service provider of the Bank or any of its group companies or subsidiaries shall not participate in the Auction or bid the gold Jewellery/ coins. On receipt of full bid amount and applicable taxes, fees, duties etc., the Bank will allow the successful bidder to take delivery of the gold Jewellery/ coins within a period of 2 succeeding business days from the date of auction from the Branch concerned. No separate intimation shall be sent by the Bank to the Successful Bidder for taking delivery of gold Jewellery/ coins,
11. The successful bidder shall take delivery of gold Jewellery/ coins directly from the branch concerned within the period stipulated.
12. Delivery of gold Jewellery/ coins/ornaments will be allowed only between 10 AM to 4 PM within 2 days of auction. In case the Bank is unable to deliver the gold Jewellery/ coins/ornaments within the specified time due to unforeseen reasons, the Successful Bidder shall not be entitled to claim any compensation for such delay.
13. The Bank shall not entertain any dispute/claims with regard to the quality, purity and weight of gold Jewellery/ coins/ once the gold Jewellery/ coins are delivered to the Successful Bidder/authorised representative.
14. The Bank reserves the right to accept/ reject/ cancel any bid even after acceptance of bid/ issue of delivery confirmation without assigning any reason thereof. In such cases, the amounts paid by the Successful Bidder if any shall be returned by the Bank. The bank shall not be responsible for any damages/loss whatsoever caused to the Successful Bidder on account of such withdrawal/cancellation.
15. The Bank reserves its right to initiate appropriate legal action against the Successful Bidder and/or his/her/their authorised representative in the event of fraud, misrepresentation or misappropriation, besides claiming damages and indemnification from the Successful Bidder.
16. The successful bidder shall submit the following documents to the Bank at the time of making payment of the bid amount:
    1. PAN
    2. Copy of GST registration certificate (if applicable)
       In addition to the above, any one of the following documents shall also be submitted to the Bank by the successful bidder at the time of making payment of the bid amount:
       1. Valid Passport with photograph & signature
       2. Voter ID card
       3. Driving license
       4. Pension Payment Order/Passbook/Card issued by State/Central Govt of India
       5. Defence Dependant Card or Discharge Book issued by Cantonment Board or Ex-Servicemen Card issued by Zilla Sainik Board or Other Competent Authority or Station Head Quarters.
       6. Aadhaar letter card issued by Unique Identification Authority of India (UIDAI)
17. Any disputes in connection with the gold auction shall be subject to the exclusive jurisdiction of the Courts at Ernakulam only