In the 23 January 2013 edition of newspaper “Dienas Bizness”, Maris Liguts, Attorney at Law of TARK GRUNTE SUTKIENE talks about the necessity to introduce electronic auctions, which would help eliminating fraudulent behaviour during movable and immovable property auctions.
The current Insolvency Law states that the first auction is organized with the bottom-up step and the second with the top down. Therefore a certain group of people has realized the nuance that makes it possible to buy almost any property for only 10% of its value.
The attorney considers that the possible solutions could be:
- Matching the procedures for organization of auctions in the Insolvency Law and the Civil Procedure Law,
- Implementation of an auction fee, which would not be refunded, if the bidder does not bid,
- The Administrator’s right to declare the second auction void, if less than 50% of the starting price is guaranteed, and a subsequent sale of the property at a free cost.
Click here to read the publication (available in the Latvian language).