Living next door to Bollywood superstar Amitabh Bachchan could be a reality for those interested. But, it comes with a hefty price tag.
In Mumbai’s posh Juhu area, a bungalow near Bachchan’s famed residence Jalsa will soon be auctioned off. Deutsche Bank has pegged the starting price at ₹25 crore. With a mix of indoor and outdoor space, totalling over 3,000 square feet, the auction is set for March 27, Moneycontrol reported.
This sale falls under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFAESI) of 2002. The bank previously asked borrowers and co-borrowers Seven Star Satellite Pvt Ltd and others to clear their dues of ₹12.89 crore.
Since they couldn’t pay up, the bank took over the property and decided to auction it. The bank demands ₹2.50 crore as the Earnest Money Deposit (EMD) from interested buyers.
Risks of buying house in bank auction
People often assume that real estate properties sold by banks in auctions have no legal issues. But, the notice usually says that the bank believes there are no problems with the property. However, it won’t take responsibility for any hidden legal troubles or claims by others later on.
Legal terms like “as is where is” and “whatever there is” are used while auctioning properties. These mean the property is being sold as per its present physical and legal conditions, including encumbrances, if any.
Once the property is sold in an auction, any future issues are the buyer’s problem. Experts say sometimes buyers find out the property has legal disputes or there’s a court order against the bank’s auction. Also, banks might only have the property on paper, not in reality. So, the previous owner might still live there.
Before joining the auction, one must check all the details carefully. Banks give early notices about online auctions and share info about the properties. You should not just trust the bank’s word. If someone else says they own your new property, the bank probably won’t help you.
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Published: 13 Mar 2024, 07:51 AM IST