Bollywood actors Sara Ali Khan, Arjun Kapoor and Shatrughan Sinha may soon have new neighbors. The Union Bank of India has issued a public notice to sell properties of Indus Projects Limited and its promoters after they failed to pay the dues. The reserve price for the prime property to be auctioned on June 20 is ₹104.11 crore.
The building is located in the same neighbourhood where Bollywood stars such as Sara Ali Khan, Arjun Kapoor and Shatrughan Sinha and his family reside.
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The notice says that the bank plans to auction the 9-storey residential building owned by the promoters. The building comprises seven 4BHK and a duplex located in Mumbai’s Juhu Vile Parle Development (JVPD), Kapole Society in Vile Parle West.
The residential property is a nine-storeyed building located in Nutan Laxmi CHS Ltd. The plot measures 800 sq yards in the Nutan Laxmi Co-operative Housing Society Ltd., North South Road, J V P D. Scheme, Vile Parle (West), Mumbai, the bank notice shared by Hecta, a marketing platform of repossessed properties being auctioned by banks and financial institutions, showed.
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Indus Projects Limited, a public company incorporated in 1997, is the owner of the building. The notice mentioned names of Kishor Mehta, Abhai Mehtax, Mahavir Mehta, Madhur Mehta and Indus Mechanical Engineering Company Private Limited as borrowers of the bank.
Indus Projects Limited could not be reached for a comment.
The total outstanding dues are around ₹90.46 crore. The owners owe Union Bank Of India around ₹71.85 crore plus interest at applicable rate, costs, dues, and expenses and they owe State Bank of India ₹18.60 crore plus further interest at applicable rate, costs, dues, and expenses that may accrue from April 23 till total repayment and settlement of dues, the notice said.
The bungalow is being auctioned by Union Bank of India under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFAESI) of 2002.
“Since you failed to comply with the said notice within the period stipulated, the Authorized Officer has taken possession of the immovable secured assets under Section 13(4) of the Act read with Rule 8 of Security Interest (Enforcement) Rules, 2002,” the notice said.
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“Since the owners have failed to clear the dues of the secured creditor, the immovable secured assets that have been taken possession of by the Authorised Officer of the bank, will be sold by holding public E-auction on June 20, 2024 by inviting bids from the public through online mode on www.mstcecommerce.com,” the notice showed.
This deal is at a 25% discount from market price. The amount has to be paid from banking channels as it is a fully cashless transaction and payment has to be completed within 15 days from the auction date, said Sridhar Samudrala, founder and CEO, Hecta.
“These are ready-to-possess and ready-to-occupy floors in a premium location. Rarely do we get access to such premium properties that too at a discount,” he added.
Wish to buy a property through a bank auction? Here’s what you should know
Most of these properties are available at a discount to market price as these are auctioned by banks only after the loan borrower misses multiple payments and the lender auctions the property to recover the outstanding principal and interest amount on the loan.
Buyers wanting to procure properties through a bank auction should verify details of the property, especially the legal details, before they decide to bid for them.
Buyers should be aware that the reserve price quoted excludes dues (such as electricity, property tax, maintenance), which are payable by the buyer.
The prospective buyer should also check for physical possession status of the property, whether the physical possession has been obtained by the bank advertising the sale, after following the due process.
These properties are sold on ‘As is where is’ basis or ‘Whatever is there is’ or ‘No recourse basis’ which means that the buyer needs to check the inclusions and exclusions and cannot withdraw from the deal once the auction is over (unless due to exceptional legal circumstances), says a legal expert.
In case of bungalows or apartments that are auctioned, buyers should check if there are any liabilities associated with the properties that are being auctioned, said a legal expert.
