Auction Policy

Rajput Leasing and Finance Ltd. follows a fair and transparent auction process in accordance with RBI guidelines and applicable laws when pledged gold articles are not redeemed within the agreed loan tenure. The auction policy is as follows:

Trigger for Auction

If the borrower fails to repay the gold loan (principal and interest) within the due period or extended grace period, the Company shall initiate the auction process.

Prior to auction, reminders and notices will be sent to the borrower’s registered contact details.

Notice of Auction

A final Auction Notice will be issued giving the borrower a minimum of 15 days’ notice to clear their dues before the gold is auctioned.

The notice will also be published in at least one local newspaper, as per regulatory norms.

Auction Procedure

The auction will be conducted through a public bidding process at a designated location or through an authorized auctioneer.

Only certified gold valuers and RBI-compliant processes will be followed during the auction.

The Company reserves the right to postpone or cancel the auction under special circumstances.

Recovery of Dues

Proceeds from the auction will first be used to recover:

Outstanding principal

Accrued interest

Auction-related expenses (advertisement, handling, transportation, etc.)

Any surplus amount (after settling dues) will be refunded to the borrower.

If the auction proceeds are less than the outstanding loan, the borrower remains liable to pay the balance.

Non-Liability of Company

The Company shall not be held responsible for any loss or damage to the gold during storage, handling, or auction due to reasons beyond its control (e.g., natural calamities, theft, etc.), although reasonable care is taken.

Compliance and Records

All auction-related documentation is maintained and made available for inspection by regulatory authorities if required.

The Company ensures the auction process is transparent, fair, and non-discriminatory.