Auctions and sales are common methods used by banks and financial institutions to dispose of the assets of defaulting borrowers that have been taken into possession under the SARFAESI Act. The aim of these auctions and sales is to recover the dues owed to the banks and financial institutions by selling the secured assets.

There are several types of auctions and sales that are commonly used in the recovery process, including:

1. Public auctions: In a public auction, the assets taken into possession are put up for sale through a public auction process. Interested buyers are invited to bid on the assets, and the asset is sold to the highest bidder.
2. Private treaty sales: In a private treaty sale, the assets taken into possession are sold directly to a buyer without going through a public auction process. The sale price is negotiated between the buyer and the bank or financial institution.
3. E-auctions: E-auctions are conducted online, allowing buyers to bid on the assets remotely. E-auctions are becoming increasingly popular as they are more convenient and efficient than traditional auctions.
4. Direct sales: In a direct sale, the bank or financial institution sells the assets to a buyer without going through an auction process. This may be done in cases where the bank or financial institution has identified a suitable buyer for the asset.

Auctions and sales are an important part of the recovery process under the SARFAESI Act. They enable banks and financial institutions to dispose of the assets of defaulting borrowers in a transparent and fair manner, while also maximizing the recovery of their dues. However, it is important that the auction and sale process is conducted in a fair and transparent manner, with adequate opportunities for interested buyers to participate and bid on the assets.