Under the SARFAESI Act 2002, banks can take possession of mortgaged property when the borrower defaults and auction it via public e-auction to recover dues. Reserve price, EMD, and auction date are published in a public notice.
EMD (Earnest Money Deposit) is paid directly to the bank, usually via NEFT or demand draft, before the cut-off date listed on the auction notice. Successful bidders adjust the EMD against the final price; unsuccessful bidders get refunds.
Reserve prices are often 10–25% below market valuation, but final auction prices depend on bidding competition. Always factor in stamp duty, registration, and any pending dues before deciding.