Bank to auction Sunny Deol’s Juhu villa to recover Rs 56 crore loan. Details
Sunny Deol, a prominent Indian actor known for his roles in various Bollywood films, is facing a financial setback as his upscale Mumbai villa is being auctioned by the Bank of Baroda. The villa is located in the posh area of Juhu in western Mumbai. This action has been taken by the bank in an attempt to recover a loan that was extended to Sunny Deol. The loan amount is reported to be around Rs 56 crore.
The Bank of Baroda has placed a notice for the auction in a national newspaper on Sunday, August 20. The notice contains several key details related to the loan and the property. It mentions Sunny Deol’s real name, Ajay Singh Deol, and reveals that his Juhu villa is named Sunny Villa. This suggests that the villa holds a personal significance to him.
Moreover, the notice also specifies that Sunny Deol’s family members and business are connected to the loan as guarantors. His brother, Bobby Deol (real name Vijay Singh Deol), their father, Dharmendra Singh Deol, and Sunny Deol’s company, Sunny Sounds Pvt Ltd, are listed as guarantors and corporate guarantor for the loan borrowed from the Bank of Baroda. This implies that their assets and financial stability might be linked to the loan repayment as well.
The auction of the villa is a significant development in Sunny Deol’s financial matters. It highlights the challenges he might be facing in meeting the loan repayment obligations, leading the bank to take this step to recover the outstanding amount along with accrued interest. The situation underscores the financial complexities that even well-known individuals can face, and it has drawn public attention due to Sunny Deol’s celebrity status.
The villa that is scheduled for auction is named Sunny Villa, and it is situated on Gandhigram Road in the upscale area of Juhu. In addition to the villa, the surrounding land is also being put up for auction in order to recover the outstanding dues. The total land area available for auction is approximately 599.44 square meters. This land is specifically identified as part of Survey No. 41, Hissa No. 5 (Pt), CTS No. 173, situated in the village of Juhu, Taluka Andheri, Mumbai Suburban District.
1. Reserve Price:
The reserve price in an auction is a crucial aspect that signifies the minimum amount that the auctioneer (in this case, the Bank of Baroda) is willing to accept as a winning bid for the property. The purpose of setting a reserve price is to ensure that the property is not sold for an amount that is significantly lower than its perceived or market value.
In the case of Sunny Villa, the Bank of Baroda has determined a reserve price of Rs 51.43 crore. This means that any bid below this amount will not be considered successful, and the property will not be sold if the bidding does not reach or exceed this threshold.
2. Earnest Money Deposit (EMD):
An Earnest Money Deposit (EMD) is a security deposit required from potential bidders to demonstrate their genuine intent and commitment to participating in the auction. It serves as a financial safeguard for the auction process, ensuring that only serious bidders are involved.
The EMD amount varies based on the property’s value and the auction’s terms. For the Sunny Villa auction, interested bidders are required to submit an EMD of approximately Rs 5.14 crore. This deposit is usually a percentage of the reserve price and is refundable if the bidder does not win the auction. If the bidder wins, the EMD is typically applied towards the final purchase price.
In summary, the Bank of Baroda’s decision to set a reserve price and require an Earnest Money Deposit is aimed at maintaining the integrity of the auction process. The reserve price ensures that the property is not undersold, while the EMD ensures that only serious and committed bidders participate.
This process helps create a competitive and transparent environment for potential buyers and aids the bank in recovering the outstanding dues from the loan extended to Sunny Deol.
During the auction process, interested bidders can place bids on the property. The increase in bid amounts is predetermined, and for this auction, the bid increment has been set at Rs 10 lakh. This means that each new bid must be at least Rs 10 lakh higher than the previous bid.
The auction of the property and land surrounding Sunny Villa, along with the specified details such as the reserve price, EMD, and bid increment, highlights the formal procedure being followed by the Bank of Baroda to recover the outstanding loan amount from Sunny Deol. The auction process is designed to attract potential buyers and investors who are willing to pay a competitive price for the property, allowing the bank to recover the dues owed by Sunny Deol.
