A bungalow neighbouring Bollywood star Amitabh Bachchan's bungalow named Jalsa near Juhu beach in Mumbai is set to be auctioned. Deutsche Bank has put the bungalow under auction with a reserve price of Rs 25 crore.
The carpet area of the bungalow measures 1,164 sqft along with open space of 2,175 sqft. The auction is scheduled on March 27, according to a public notice issued by Deutsche Bank.
The bungalow is being auctioned by Deutsche Bank under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFAESI) of 2002.
According to the public notice, the bank had sent a demand notice in April 2022, calling upon the borrowers and co-borrowers Seven Star Satellite Pvt Ltd along with others to repay the outstanding amount of Rs 12.89 crore within 60 days.
However, the bank in the public notice said that as the borrowers and co-borrowers failed to repay the outstanding, it has undertaken possession of the property mortgaged with it. The reserve price of the auction dated March 27 is Rs 25 crore and the EMD amount is Rs 2.50 crore.
When contacted, Atul Saraf Managing Director of Seven Star Satellite Pvt Ltd declined to comment citing the matter is sub judice.
Also read: Bank of Baroda takes part-possession of Nirmal Lifestyle's mall in Mumbai
Should you buy property via auction?
According to real estate experts, banks usually sell properties via auction at discounted price and hence prospective buyers may get a good deal in case they opt to purchase.
"Banks have a variety of properties to sell, which they repossess against loan defaults. They sell at usually at 15 percent to 30 percent discount from the market price. In this particular case, a similar bungalow of similar size in the surrounding of Juhu beach would easily cost around Rs 35 or 40 crore," said Sridhar Samudrala, Founder, Hecta, a marketing platform of repossessed properties being auctioned by banks and financial institutions.
In a similar bungalow deal in the Mumbai real estate market, Girdhari Lal Bawri, Managing Director of Macleods Pharmaceuticals, in February 2024, purchased a 3,600 sqft bungalow on an over 7,000 sqft plot in Vile Parle area of Mumbai for Rs 101 crore.
This was followed by Bollywood actor John Abraham purchasing a 5,416 sqft bungalow in Khar area of Mumbai in December 2023, for over Rs 70.83 crore
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