A bungalow situated next to Bollywood legend Amitabh Bachchan’s iconic residence, Jalsa, near Juhu Beach in Mumbai, is set to go under the hammer. Deutsche Bank has initiated the auction process with a reserve price of Rs 25 crore.
The bungalow boasts a carpet area of 1,164 sqft along with an additional open space of 2,175 sqft. Scheduled for auction on March 27, as per the public notice issued by Deutsche Bank, the property is being auctioned under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFAESI) of 2002.
The auction stems from a demand notice issued by the bank in April 2022, urging the borrowers and co-borrowers, including Seven Star Satellite Pvt Ltd, to repay an outstanding amount of Rs 12.89 crore within 60 days. However, with no repayment forthcoming, the bank has assumed possession of the mortgaged property and set the reserve price for the auction at Rs 25 crore, with an Earnest Money Deposit (EMD) of Rs 2.50 crore.
Upon inquiry, Atul Saraf, Managing Director of Seven Star Satellite Pvt Ltd, refrained from commenting, citing the sub judice nature of the matter.
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Should you buy property via auction?
Real estate experts suggest that properties sold through auctions by banks often come at discounted prices, offering potential buyers an opportunity for a lucrative deal.
“Banks typically sell repossessed properties at a discount ranging from 15% to 30% off the market price. In this case, a bungalow of similar size in the vicinity of Juhu Beach would ordinarily fetch around Rs 35 to 40 crore,” commented Sridhar Samudrala, Founder of Hecta, a marketing platform specializing in repossessed property auctions.
In a recent Mumbai real estate transaction, Girdhari Lal Bawri, Managing Director of Macleods Pharmaceuticals, acquired a 3,600 sqft bungalow on a plot spanning over 7,000 sqft in the Vile Parle area for Rs 101 crore in February 2024.
This follows Bollywood actor John Abraham’s purchase of a 5,416 sqft bungalow in the Khar area of Mumbai in December 2023, for over Rs 70.83 crore.
