The managing bank overseeing the auction, Deutsche Bank, has set an initial bidding price of Rs 25 crore.
For those interested, residing next to Bollywood icon Amitabh Bachchan could soon become a reality, albeit at a steep price.
A bungalow, situated in the upscale Juhu area close to Bachchan’s famous residence, Jalsa, is scheduled for auction. Deutsche Bank has determined the starting price at Rs 25 crore, with the auction set for March 27. This property boasts over 3,000 square feet of both indoor and outdoor space, as reported by Moneycontrol.
This property sale is governed by the Segmentation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFAESI) enacted in 2002. The bank previously sought repayment of a Rs 12.89 crore debt owed by Seven Star Satellite Pvt. Ltd., along with several other borrowers and co-borrowers.
Following the failure to meet the required payments, the bank decided to auction the property. Those interested in bidding must present an earnest money deposit (EMD) of Rs 2.50 crore to participate.
Caution: Purchasing a home through a bank auction entails inherent risks.
Many potential buyers operate under the misconception that properties auctioned by banks are devoid of legal complications. However, the auction notice typically asserts that the bank considers the property in good condition, without any guarantee against undisclosed legal issues or future claims arising from third parties.
When it comes to auctioning properties, legal terminologies such as “as is where is” and “whatever there is” imply that any and all encumbrances—both legal and physical—are encompassed in the sale price.
Any issues that may arise post-sale fall squarely upon the buyer's shoulders. Experts warn that prospective buyers could encounter obstacles, such as a court ruling against the bank's ability to auction the property, or discover it embroiled in ongoing legal disputes. Moreover, there’s a possibility that the bank might only hold title on paper, while the former owner could still be residing on the premises.
Thus, before placing any bids, thorough due diligence is indispensable. Banks do possess information about the properties and generally provide advance notice of online auctions. It’s unwise to accept claims made by the bank at face value, as your newly acquired property could potentially have co-owners, which the bank is unlikely to rectify.