Dedicated locality research platform
Enter your email address and you will receive
a link to reset your password
Last week Bank of Baroda published an e-auction notice for ‘Sunny Villa’ a bungalow located Juhu, Mumbai that is owned by none other than famous Bollywood actor Sunny Doel. The auction date for the 600 square meter property was announced for 25th September 2023, with a reserve price of Rs 51 crores and an earnest money deposit of Rs 5 crores. However, on 20 August, the bank withdrew the notice citing technical reasons.
Mr Doel, a known actor and member of parliament, is said to owe the bank approximately Rs 56 crores since December 2022. Sunny Sounds, owned by the Deols is the corporate guarantor and Dharmendra Deol, Sunny Doel’s father, is the personal guarantor of the debt. Despite the looming auction, the Deol family has the option to settle the dues and potentially halt the auction process, as outlined by the provisions of the Sarfaesi Act.
The Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act (Sarfaesri Act) 2002 empowers banks and financial institutions to recover their non-performing asset (NPA) loan dues without the intervention of the Court. The Act is applicable to all NPAs with outstanding dues above Rs 1 lac. NPAs wherein the amount due is less than 20% of the principal and interest do not come under the purview of this Act.
Under the Act, the creditor can send a legal notice to the borrower if the borrower has not been able to repay his or her loan for a period exceeding six months. Once a legal notice is sent, the borrower has 60 days to clear the dues. Should the borrower fail to do so, the financial institution has the right to sell the property to recover dues. According to the now deleted auction notice, Mr Deol is said to have not cleared his dues since December 2022. Based on this, the auction notice appears to be line with the rules of the Act.
The Sarfaesi Act auction rules require the bank to publish a sale notice in at least two leading newspapers, on the website of the secured creditor (in this case Bank of Baroda) and on the corresponding government website. Bank of Baroda is said to have published the notice in India’s leading newspaper Times of India, Mumbai edition. The proceeds gained through the sale are first used to clear the outstanding dues of the bank and the remaining money is given to the defaulting borrower.
Sunny Deol, whose full name is Ajay Singh Dharmendra Deol, holds the position of an MP within the BJP party, representing the Gurdaspur constituency. He secured this position through the 2019 elections, winning by a significant margin.
The swift action taken by Bank of Baroda reflects the bank’s strong stance on NPAs. While its actions appear to be well within the purview of the Sarfaesri Act 2002, the urgency to issue the notice can appear harsh and perhaps even hasty. It remains to be seen what transpires between the bank and the borrower.
Propscience is India’s dedicated property news portal. We cover the latest events, news, trends, deals, new launches and more.
All our services and tools are completely free of cost and available 24X7!
We use cookies to give you the best possible service while using our website, please click accept and carry on browsing if you're happy with this. For more information see our Privacy Policy.
Okay, Got it!This disclaimer ("Disclaimer") is applicable to the entire Site. Upon entering the Site it is recommended that you immediately read the Terms and Conditions and Privacy Policy listed therein. Your continued usage of this Site will indicate your unconditional acceptance of the said Terms and Conditions and Privacy Policy. You hereby agree that Propscience reserves the right to modify at any time, the Terms and Conditions and Privacy Policy governing this Site without prior notification. Your usage of the Site implies that you will be bound by any such modification. You agree and acknowledge that it is your responsibility to periodically visit the Site and stay updated with the Terms and Conditions and Privacy Policy of the Website.
The information contained in this Site has been provided by Propscience for information purposes only. This information does not constitute legal, professional or commercial advice. Communication, content and material within the Site may include photographs and conceptual representations of projects under development. All computer-generated images shown on the Site are only indicative of actual designs and are sourced from third party sites.
The information on this Site may contain certain technical inaccuracies and typographical errors. Any errors or omissions brought to the attention of Propscience will be corrected as soon as possible. The content of this Site is being constantly modified to meet the terms, stipulations and recommendations of the Real Estate Regulation Act, 2016 ("RERA") and rules made thereunder and may vary from the content available as of date. All content may be updated from time to time and may at times be out of date. Propscience accepts no responsibility for keeping the information in this website up to date or any liability whatsoever for any failure to do so.
While every care has been taken to ensure that the content is useful, reliable and accurate, all content and information on the Site is provided on an "as is" and "as available" basis. Propscience does not accept any responsibility or liability with regard to the content, accuracy, legality and reliability of the information provided herein, or, for any loss or damage caused arising directly or indirectly in connection with reliance on the use of such information. No information given under this Site creates a warranty or expands the scope of any warranty that cannot be disclaimed under applicable law.
This Site provides links to other websites owned by third parties. Any reference or mention to third party websites, projects or services is for purely informational purposes only. This information does not constitute either an endorsement or a recommendation. Propscience accepts no responsibility for the content, reliability and information provided on these third-party websites. Propscience will not be held liable for any personal information of data collected by these third parties or for any virus or destructive properties that may be present on these third-party sites.
Your use of the Site is solely at your own risk. You agree and acknowledge that you are solely responsible for any action you take based upon this content and that Propscience is not liable for the same. All details regarding a project/property provided on this Site are updated on the basis of information available from the respective developers/owners/promoters. All such information will not be construed as an advertisement. To find out more about a project / development, please register/contact us to visit the site you are interested in. All decisions taken by you in this regard will be taken independently and Propscience will not be liable for any such loss in connection with the same. This Site is for guidance only. Your use of this Site - including any suggestions set out in the Site and or any use of the resources available on this Site, do not create any professional - client relationship between you and Propscience. Propscience cannot accept you as a client until certain formalities and requirements are met.
We use cookies to give you the best possible service while using our website, please accept it and continue browsing if you're happy with this. For more information see our Privacy Policy