Facing prospects of his bungalow in Mumbai being auctioned to recover unpaid loans, Bollywood actor Sunny Deol has offered to settle all outstanding dues, prompting state-owned lender Bank of Baroda to drop auction proceedings for the property.
The lender issued a statement on Monday, saying that Deol has offered to settle the dues, hours after it withdraw the public notice to auction the villa owned by the actor and sitting BJP Member of Parliament, citing technical reasons, a move that was questioned by Congress.
In the meantime, the borrower has approached the bank for settling the dues as per the sale notice published on August 20, wherein the borrower/guarantors were notified that they are entitled to redeem the securities by paying the outstanding dues/costs/charges and expenses at any time before the sale is conducted, the bank said. Bank of Baroda said the auction notice was withdrawn after the borrower agreed to settle dues as well as due to certain technical reasons.
Explaining the technical reasons, the second largest public sector lender said the total dues did not specify the exact quantum of dues to be recovered. Also, the sale notice was based on a symbolic possession of the property as per Rule 8(6) of the Security Interest (Enforcement) Rules 2002.
The bank said, an application to the chief metropolitan magistrate sent on August 1, 2023 seeking physical possession of the property is pending. Since the unit is running as conveyed to us by the borrower, sale/action will be initiated as per the provisions of the Sarfaesi Act, once the physical possession is taken. Accordingly, the sale notice is withdrawn as per the normal industry practice followed in other cases as well, the lender said in a fresh statement.