CAN AN AUCTION BE ORGANIZED AMONG THE PARTICIPANTS THAT FILED AUCTION BIDS 5 YEARS AGO?

A precedent FAS decision on a complaint about an auction announced in 2014

In 2014, “Expertcentre” announced an auction to sell bankrupt’s property at “TENDER GARANT” electronic site. It was intended to sell the property in the Omsk region for minimum 12 million RUB. Three bids were filed, but due to several circumstances and judicial proceedings the auction organizer fully suspended the auction.

In such conditions, one of the bidders (a physical person) requested a several million RUB deposit, but could return back only several thousands Rubles since “Expertcentre” was recognized bankrupt and its general Director was convicted.

Head of FAS Department for Control over Construction and Natural Resources, Oleg Korneev explained: “The auction continued after nearly five years. The bidder who was able to get only 5000 RUB from the deposit instead of 2.4 million RUB complained about actions of the auction organizer and the e-site. The bidder was not allowed to take part at the auction”.

FAS Commission established that according to the auction documentation, only those who filed applications and paid the deposit in 2014 can take part in the auction. Therefore, only two bidders can take part today in the auction announced in 2014.

Deputy Head of FAS Rachik Petrosyan emphasized: “In the current situation this requirement is absurd. The data in the applications filed five years ago may, at minimum, do not match the reality and the law standards when concluding the contract. Organizing the auction in 2019 among only those participants who filed the applications 5 years ago restricts competition  and the right of potential bidders interested in acquiring property, put up for the auction. The case materials will be forwarded to the law enforcement bodies for verification”.

In spite of multiple postponing of FAS Commission’s sessions, the auction organizer still has failed to submit to the Commission the participants’ applications filed in 2014, and therefore, confirm their authenticity and applicability.

“Expertcentre” Ltd. is ordered to abolish the auction results and set new dates for accepting bids and filing the deposits.